What is the total tax contribution framework and what will it tell me?

The PwC Total Tax Contribution (TTC) framework can help your company to identify its true tax contribution.

The Total Tax Contribution framework provides a standardised approach to identifying a company's overall tax contribution. It is a framework that can be used on a country-by-country basis and/or on a global basis. PwC now has TTC expertise in a wide range of countries, including knowledge of all the business taxes that operate in the countries (for example, over 20 taxes in the UK and over 50 taxes in Australia, and 49 in Switzerland) and can provide a data collection tool, suggests sources of data and where it is acceptable to use estimates.  Cross sector studies have been or are being conducted in 14 countries, Studies for specific industry sectors have also been undertaken within a country and on a global basis.

Our Total Tax Contribution team can help companies to collect their data, consider appropriate benchmarks and help them decide how they will communicate their total tax contribution to stakeholders.

What are the benefits?

Having a clear understanding of its total tax contribution can enable a business to make better informed decisions, demonstrate its wider social and economic impact and better monitor and manage tax risk. There is increased interest in the company’s tax position by a wide range of stakeholders, often in terms of the link between tax and corporate social responsibility. This is as well as an increased interest in tax avoidance activities from the tax authorities.

Using a robust methodology, standardised across industries, PwC can help companies collect this data which can then be used to:

• Highlight the importance of all taxes as well as corporate income tax
• Manage tax costs
• Make strategic decisions
• Benchmark the business
• Communicate the Total Tax Contribution of the company internally with departments responsible for areas such as corporate responsibility and also to brief the Board
• Communicate tax contributions externally – an accurate picture of a company’s total tax contribution could be communicated in:
  
  
  • the annual report;
  • corporate responsibility reports;
  • economic impact reports;
  • PR and marketing campaigns; and
  • investor communications.
    
    
• Facilitate a positive dialogue with HMRC

We are also able to benchmark companies again those in their industry sector, and generally, so that companies can better manage and report their tax position.