In recent years, tax authorities, corporate management, but also civil society, investors and customers, are increasingly demanding more tax transparency and tax risk management. These stakeholders require transparency from multinational companies, and transparency is all about fostering trust and maintaining and building reputation. Now more than ever, companies need to be able to demonstrate that they are continuously ‘in control’ of tax risks.
A sustainable and honest approach to tax, tax transparency and a company’s openness with respect to its contributions around the world are becoming essential components of sustainable corporate strategies. The public and investors are requesting more transparency; lawmakers and regulators are increasingly requiring it; leading companies are setting the bar high; and standard setters are designing reporting frameworks that everyone can follow and understand.
Tax transparency can be seen as a journey. There is no ‘one size fits all’ and a general observation is that companies move more and more towards publication of quantitative data (on a country-by-country or regional basis), in addition to qualitative data (such as tax policy, tax strategy and governance). Following a publication from our colleagues in the Nordics, we have also started an analysis of in total 87 unique companies in Belgium, Luxembourg and the Netherlands, from which we have taken inventory of the current status in the Benelux region of this journey and how far they have yet to go. At KPMG, we strongly believe that transparency is a legitimate expectation, key to responsible tax behavior and building trust. Our goal is to be of support and act as a trusted adviser to our clients on this journey, from start to finish.
