KPMG suggests framework for disclosing tax information
The UK government recently announced plans to introduce a legislative requirement that large businesses must publish their tax strategy as part of a consultation on large business tax compliance in which transparency is a key element, reports Economia.
Jane McCormick, senior tax partner at KPMG in the UK commented, “With several different reporting regimes existing side by side and various stakeholder groups looking for varying forms of disclosure, there is a real challenge for companies in how they manage this.”
KPMG believes a prescriptive “one size fits all approach” is not the right way to proceed with transparency.
“Developing a common framework for disclosing tax information” is the result of a series of discussions KPMG has held with a number of leading UK-headquartered multi-national groups on this issue.
The document discusses whether a standard approach to present tax data might be possible.
It also summarises a number of common themes which could provide a framework for tax disclosure including the following: strategy/policy and approach to tax, tax risk governance, business model, tax contribution and specific information in relation to material issues.
Chris Morgan, head of tax policy at KPMG in the UK said, “The framework we have developed does not attempt to answer all of the questions an organisation may have, nor does it put forward a definitive template for disclosing tax information. What it aims to do is to prompt companies to evaluate where they are now in the overall tax transparency debate and to consider how they might approach this area in the future.”
