With the von der Leyen’s Commission ready to implement an inclusive agenda and curb corporate tax avoidance in the EU, ensuring a responsible tax behaviour is of paramount importance for companies and their reputation. To ensure a smooth sailing towards a responsible and transparent tax behaviour, CSR Europe developed a 3 Step Approach that will help them building trust in their business.
Tax is increasingly the new standard of a company’s wider Corporate Sustainability and Responsibility strategy. While Ursula von der Leyen’s Commission promises to step up action in this respect, CSR Europe has long worked on how to help companies in ensuring tax transparency and responsible tax behaviour. The result? A Blueprint for Responsible and Transparent Tax Behaviour. The document forms the foundation of CSR Europe’s 3 Step Approach to building a Responsible Tax Strategy It aims to support companies get the basics right when it comes to responsible tax and produce a responsible tax strategy.
Step 1: Rate your processes with the Tax Self-Assessment Questionnaire. You will be able to assess where your company stands on tax transparency and responsible tax policies.
Step 2: Get the internal buy-in through an Internal Workshop. It will help you bridge and promote communication between CSR and tax departments, linking tax with sustainability and upgrading tax in your company’s sustainability vision and strategy.
Step 3: Test your strategy through an External Stakeholder Dialogue
CSR Europe’s tax approach for companies and National Partner Organisations (NPOs) stems from our 2016 tax project. Our bespoke services will allow you to link tax with sustainability through best practices of front-runner companies and get the internal buy-in on the importance of embedding sustainability in tax decisions and practices. In the new area of sustainable finance, responsible tax becomes a cornerstone of any respectable company’s response to society. It is the first place to contribute and address your impacts on society and the communities you operate in.
Towards a Fair Taxation Strategy for Europe
Estimation of tax avoidance in Europe is difficult to make. However, the lower-end estimate of lost tax revenue to the EU due to aggressive corporate tax planning was measured around €50-70 billion per annum, according to the 2015 study of the European Parliament. If we add other tax regime issues, such as special tax arrangements, inefficiencies in collection and other practices, the (conservative) estimate for revenue losses due to corporate tax avoidance in the EU could amount to around €160-190 billion. How to reduce tax avoidance and implement a fair taxation then? Digital taxation, energy taxation directive to end fossil fuel subsidies, carbon border tax, consolidated common tax base are amongst the priority of President-Elect von der Leyen to ensure an inclusive agenda for 2019-2024.