Transparent bubble

Governance & Tax Transparency

Tax transparency falls within both the S and G of the ESG agenda. From a social perspective, how much tax is being paid and where, and what tax strategies are being followed by companies globally?

Explore Governance & Tax Transparency

Tax transparency falls within both the S and G of the ESG agenda. From a social perspective, how much tax is being paid and where, and what tax strategies are being followed by companies globally? From a governance perspective, what are the policies in place, how are they being enforced, and who is ultimately responsible?

While the pressure in different geographical regions varies, market forces are demanding that companies reflect on and explain their corporate purpose and contribution to society, with expectations coming from the public, investors, customers, employees, governments and the international tax community.

As a result, there are a significant number of tax transparency initiatives. Some of these are voluntary, such as the Global Reporting Initiative (GRI) standard 207 or the World Economic Forum’s metric reflected in the Stakeholder Capitalism White Paper – both released in 2020. Others are mandatory in certain sectors or geographies, such as the Extractive Industries Transparency Initiative, the EU regime for financial institutions in the Capital Requirement Directive IV or the proposals to include country by country reporting (CBCR) in the EU Accounting Directive.

Some companies have fully embraced CBCR but many others still only report what they are legally required to do. Becoming more tax transparent requires a journey but raises many questions about the cost and systems involved, the usefulness of information to users, and potential confidentiality concerns.

Nevertheless, in order to stay competitive in market, businesses must respond to the increased focus on tax strategies, policies, reporting and risk management in connection with responsible investments. In today’s environment, investors are seeking to act more responsibly, and with tax being at the heart of governance and accountability within a business, it’s clear that tax transparency will remain at the top of leadership agendas globally for quite some time.

Tax transparency is a theme being increasingly explored through our Global Responsible Tax Program and will continue to be as the world becomes more interconnected and the discussion about who pays tax intensifies.

Explore Governance & Tax Transparency

Image of KPMG responds to European Commission public consultation on “Unshell” Directive proposal

KPMG responds to European Commission public consultation on “Unshell” Directive proposal

Euro Tax Flash from KPMG's EU Tax Centre - 6 April 2022

27 Apr 2022
1 min
Image of Ireland in a changing world

Ireland in a changing world

Speech by David Linke, Global Head of Tax & Legal Services, KPMG International.

07 Apr 2022
5 min
Staircase

The evolution of the Base Erosion and Profits Shifting (BEPS) project paves the way for a new era in Responsible Tax

A responsible tax lens on the OECD's BEPS project

23 Feb 2022
2 min
Tax and ESG – The View of ESG experts

Tax and ESG – The View of ESG experts

At the moment there is a dilemma that, on the one hand, some companies consider existing standards for country-by-country type disclosures (e.g., GRI 207) are too challenging, while on the other hand, disclosures required by accounting standards are too high level to give much meaningful information on a company’s tax profile. The B Team, KPMG International and Jericho Chambers have therefore started to focus attention on how to arrive at an approach, or possibly certain tax metrics, to support ESG goals which could gain wider buy-in and encourage a critical mass of companies to become more tax transparent.

08 Feb 2022
6 min
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Podcast: Responsible Tax and Tax Transformation

In a recent podcast, John Connors, Group Tax Director, Vodafone, sat down with David Linke, Global Head of Tax & Legal Services, KPMG International, on how he is leading the transformation of his tax function for shifting demands and new opportunities.

01 Feb 2022
1 min
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Understanding tax transparency

To help organizations and other key stakeholders explore and understand the tax transparency landscape, KPMG’s Responsible Tax Project hosted a webinar on the 24 June 2021 titled, 'Understanding tax transparency'.

26 Nov 2021
12 min
Image of Global Responsible Tax: Summer Newsletter

Global Responsible Tax: Summer Newsletter

When KMPG International, in collaboration with Jericho Chambers, kicked off the Global Responsible Tax Project over six years ago, it was a challenge to gain traction. Now, global tax is on everyone’s agenda – from COP26 to the OECD, the EU, the G7 and G20.

09 Sep 2021
1 min
Image of Tax, Transparency & ESG Reporting

Tax, Transparency & ESG Reporting

What gets measured, gets managed.

19 Aug 2021
5 min
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Travelling towards greater tax transparency

From a low base, an acceptance that the direction of travel is greater tax transparency

18 Jul 2021
3 min
Video
Image of Responsible tax and transparency

Responsible tax and transparency

Carl Dolan, Director, Transparency International discusses his views on responsible tax and transparency.

13 Apr 2021
Hand reaching up to the atmosphere

Tax Policy Considerations in the Wake of COVID-19

Response from Ewan Livingston, The B Team, February 2021

12 Mar 2021
2 min
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Comments on OECD Public Consultation Document Reports on the Pillar One and Pillar Two Blueprints

21 Dec 2020
1 min
Image of coloured light circles slightly out of focus

New publication explores perspectives on tax policy for the new reality

Introducing Tax policy considerations in the wake of COVID-19 – a summary of Responsible Tax roundtable discussions on potential tax policy responses to the new reality.

18 Dec 2020
2 min
Image looking up at a circular stained glass window

What tax policy measures will support economies post-COVID-19?

Virtual Responsible Tax roundtable: The recovery phase

21 May 2020
6 min
Image looking up at the sky through a circular building

What short-term actions will governments take to address challenges arising from COVID-19?

Virtual Responsible Tax roundtable: Reaction and resilience

21 May 2020
8 min
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Discussion: OECD and KPMG discuss the complexities of tax morality

Grace Perez-Navarro, deputy director of the OECD's Centre for Tax Policy and Administration, and Jane McCormick, Global Head of Tax & Legal Services, KPMG International, discuss what it means to be ‘morally’ tax compliant.

01 May 2020
9 min
Image of Business life after COVID-19: Who pays and how?

Business life after COVID-19: Who pays and how?

A Global Responsible Tax Response Tread Carefully. Don’t Rush To Tax. There is a Better Future.

30 Apr 2020
2 min

Contributors

We are grateful to all of our contributors, including:

Raluca Enache, Director, KPMG's EU Tax Centre

Raluca Enache

Director at KPMG's EU Tax Centre

David Linke, Global Head of Tax and Legal Services, KPMG International

David Linke

Global Head of Tax and Legal Services at KPMG International

Chris Morgan, Head of Global Tax Policy, KPMG LLP

Chris Morgan

Head of Global Tax Policy at KPMG LLP

Neal Lawson, Author, Jericho Chambers

Neal Lawson

Author at Jericho Chambers

Jane McCormick, Retired Partner and former Head of Tax and Legal Services, KPMG International

Jane McCormick

Retired Partner and former Head of Tax and Legal Services at KPMG International

Becky Holloway, Programme Director, Jericho Chambers

Becky Holloway

Programme Director at Jericho Chambers

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