What is the Total Tax Contribution framework and what will it tell me?

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:

• Manage tax costs
• Make strategic decisions
• Benchmark the business
• Communicate tax contributions – 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.

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.