Corporate responsibility (CR) reporting is becoming more of a norm for MNE’s, illustrated by KPMG’s report as referenced herein.
Apart from policies, such as Human Rights, that should be a basic component of every MNE’s policy and referenced to the UN standard, tax policies are becoming more of a public norm than ever before.
A UK tax risk strategy is required to be published by every significant UK taxpayer by 12/31/2017 on a public website describing the tax risks of the UK group and how they are managed on a macro and micro based level.
Global tax policies are also proactively published by major MNE’s as part of their Best Practices and Enterprise Risk Management efforts.
A basic global tax policy, published or not, should be a primary tool integral to Board and company governance. Tax risk management, including documentation thereof, will become more of a shout than a whimper by NGO’s, parliamentarians, tax advisors and internal governance standards of every MNE.
Tax policies are also becoming more integrated with business policies in corporate governance.
To the extent policies are lacking in an organization, now is the time to address this important aspect of risk management and Best Practice governance.
Click to access kpmg-survey-of-corporate-responsibility-reporting-2017.pdf
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