No Match Found
The PwC study "Tax transparency and sustainability reporting in 2023", which analyses the tax and sustainability reporting of leading listed companies from eight different countries, shows that the variety of standards and methods being used leads to greater complexity. Close cooperation in the areas of tax and sustainability as well as clear and consistent communication between companies, stakeholders and regulators are essential.
The importance of clear and uniform tax strategies for companies becomes apparent when comparing countries. While in the UK (100%) and Spain (97%) almost all companies assessed publish or mention their tax strategy, in Austria, Switzerland and Ireland this ratio falls to about half of the companies assessed.
“Developing a company’s tax strategy can help create a clear understanding of the group’s tax objectives and processes that is available to all employees and management and applied in all countries. It can also be a cornerstone in managing tax risks and communicating with other stakeholders.”
Although there is no public tax transparency legislation in Switzerland, many Swiss companies are very willing to disclose their tax strategies. Especially in the financial services sector, some Swiss companies even outperform competitors from the EU and other countries in this regard. Last year, more than half of the Swiss companies surveyed published a tax strategy, and seven of them even published a stand-alone tax transparency report. The best-ranked Swiss companies in this study, in alphabetical order, were Adecco, Holcim, Nestle, Partners Group, Richemont, Swiss Re and Zurich Insurance.
The study is based on 269 listed companies from Brazil, Germany, Ireland, Switzerland, Spain, South Africa, Austria and the United Kingdom. Four key frameworks were considered for the study – the GRI 207: Tax 2019 standard, the S&P Global Corporate Sustainability Assessments Tax Strategy Criterion, the OECD Guidelines for Multinational Enterprises and the World Economic Forum’s Measuring Stakeholder Capitalism report.
Partner, Tax Function Design and Tax Transparency Leader, PwC Switzerland
Tel: +41 58 792 47 16
Director, PwC Switzerland
Tel: +41 58 792 45 16