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Building Public Trust Through Tax Reporting

Tax Transparency in an ESG era

Trends in voluntary reporting

The tax transparency landscape is experiencing seismic changes internationally with historical legislative and voluntary reporting developments on the near horizon. The EU is taking the lead with proposals for public country-by-country reporting now being implemented across individual Member States.

The formation of the International Sustainability Standards Board (ISSB) following COP26 represents the establishment of a new baseline for global ESG reporting, as efforts to harmonise the various ESG standards developed over recent years and elevate their status alongside IFRS accounting standards begins to gain momentum.

Find out what these developments mean for the future of tax transparency in our annual publication. Download our report for a closer look into our review of voluntary tax reporting in the FTSE100 for 2021.

Shaping the tax transparency debate

A review of the tax disclosures in the FTSE100 reveals an increase in tax transparency over the last 8 years, with some leaders dedicating time and energy to developing voluntary disclosures to inform the debate on tax transparency and improve understanding.

Read more below.

Tax Transparency Frameworks

Which framework should I follow?

There is increasing scrutiny of tax from a range of stakeholders and many companies are considering their disclosures with some asking “which tax transparency principles should I follow?” There are a number of tax transparency frameworks proposed by different stakeholders but is this the right question? In our view, companies should be asking “who is reading my disclosures, what do they want to know and what do I want to tell them?”

Download Tax Transparency Frameworks report

Tax Strategy

Is anyone reading published tax strategies?

All companies should have now published a tax strategy if required to do so and we have seen a range of approaches. In the FTSE100 the average tax strategy was 600 words long, ranging from 100 to 2,500 words. Many were global strategies, with reference to tax governance frameworks and in some cases, providing voluntary disclosures to enhance reputation and to build trust with stakeholders.

Download Tax Strategy report

Country by Country Reporting

What are the latest developments?

CbCR is a term that is used broadly, but in simple terms it means reporting on certain financial information on a country basis instead of a global basis. Under OECD BEPS Action 13, over 80 countries have passed legislation requiring companies to disclose this information privately to tax authorities. There are proposals in the EU and with the GRI (Global Reporting Initiative) for public CbCR with a small number of companies making a voluntary disclosure of CbCR data.

Download CbCR report

Explaining Tax

Which disclosures could add value to your business?

Tax is a complex topic. Mandatory disclosures prepared under international financial reporting standards do not always provide a clear picture of a company's tax affairs for a non expert reader. Some companies are making voluntary disclosures to provide a better understanding of their tax affairs, recognising always that there must be a business case for voluntary tax disclosures.

Download Explaining Tax report

Contact us

Andrew Packman

Andrew Packman

Total Tax Contribution and Tax Transparency leader, PwC United Kingdom

Tel: +44 (0)7712 666441

Janet Kerr

Janet Kerr

Senior Manager, PwC United Kingdom

Tel: +44 (0)7841 781417

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