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Your Roadmap to Responsible and Transparent Tax Behaviour

Thursday, March 21, 2019

Featuring company’s best practices, existing initiatives and 6 thematic areas to drive a company’s journey towards Responsible and Transparent Tax Behaviour, CSR Europe’s new Blueprint, is packed with practical information and can be downloaded here.

The Blueprint, prepared with the support of PwC Netherlands, will most certainly be useful to CSR and Tax Managers to start working more closely together and embed sustainability in tax decisions and practices.

COMPANY’S BEST PRACTICES

How do companies integrate responsible tax behaviour into their business operations? The Blueprint analyses examples of specific measures implemented by companies such as IBERDROLA and BBVA:

  • The Spanish Bank BBVA started to publish tax information on a country to country basis before the legal obligation in 2011. Since then it has published an annual Total Tax Contribution (TTC) report on its economic contribution to public finances, which goes beyond the information it is required to disclose under CRD IV.
  • IBERDROLA, a Spanish public multinational electric utility company, uses 2 main principles in relation to tax planning
    • Respect of legislation (i.e. tax planning within the boundaries of law)
    • No use of artificial structures (i.e. a conservative and prudent approach to tax planning)

CSR Europe’s Blueprint also features company cases from NASPERS, a broad-based multinational internet and media group, UNILEVER, the consumer goods company and VODAFONE, the telecom group. Building on the collection of good practices in the field of responsible tax behaviour from these companies, the Blueprint can be used as inspiration for industry peers who are striving to become more responsible and transparent on their tax policies and payments.

6 THEMATIC AREAS

The report clarifies the concept of responsible and transparent tax behaviour by breaking it down into 6 areas that represent the main elements of tax responsibility in a business environment.

  1. Tax planning strategies
  2. Tax function management and governance
  3. Public transparency and reporting
  4. Interaction with tax authorities
  5. Tax incentives
  6. Building a narrative to accompany a tax strategy

All chapters of the publication start with a high-level snapshot / objective observation of the current market practice in each of the six identified areas. Thereafter, it zooms in on where the participating companies currently stand with respect to the thematic area, including the company’s tax strategy and practical experience.

INVENTORY OF 20 EXISTING INITIATIVES

Business associations, NGO’s, non profit initiatives and intergovernmental organisations have in recent years proactively developed guidelines, benchmarks and scorecards. CSR Europe’s Blueprint provides a very comprehensive overview including a short descriptive summary of no less than 20 initiatives.

THE WAY FORWARD: KEY TAKEAWAYS

The Blueprint outlines key takeaways to inspire companies that wish to invest further in responsible and transparent tax behaviour. As a way forward, CSR Europe plans to build on the positive examples and trends identified in this Blueprint and offer additional support to interested companies through stakeholder dialogues, peer-to-peer learning and exchange of best practices.

For more information, please contact Lorena Sorrentino (ls@csreurope.org) and Elisa Casazza at ec@csreurope.org

A Blueprint for Responsible and Transparent Tax Behaviour: Download here