Tax Transparency: All you need to know

The new world of tax will be a transparent one

Legislators, shareholders, employees and the public are expecting companies to be clear and open about their approach to tax. If you don’t want your tax transparency strategy to be dictated by external factors, it’s important to take control of it early on. To help you formulate a strategy, we’ve divided tax transparency into three main categories of stakeholders:

Tax transparency towards tax authorities
  • Tax returns
  • Country-by-country reporting
  • DAC6
Public tax transparency
  • Tax strategy
  • Tax risk framework
  • Country-by-country reporting
  • Total tax contribution
Internal tax transparency
  • Understanding the approach to tax
  • Having the right information
  • Making the right decisions

1. What is public tax transparency about?

  • Defining public tax transparency
  • Why it's a topic now
  • What's in it for me?

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3. How to implement public tax transparency

  • What information could be disclosed?
  • How to organise action

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2. Is it in your interests to be publicly tax transparent?

  • The value of public tax transparency
  • Sharing an insider's view

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4. Public tax transparency benchmark studies

  • How popular is public tax transparency currently?
  • Does the data reveal a trend?

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Where PwC can support you on your tax transparency journey:

Tax transparency strategy

  • We assist you in developing a public tax transparency strategy based on the current tax landscape 
  • Evaluate the different public tax transparency options and align the tax transparency strategy with your broader ESG agenda
  • Provide input into senior management deliverables and comment on best practice approaches for engaging with senior internal stakeholders
  • Identify all risks and opportunities that come with additional non-financial disclosures in the field of tax transparency by taking the role of a sounding board/sparring partner
  • Compare your tax transparency strategy to the requirements of sustainability standards or other initiatives, such as GRI 207: Tax, WEF IBC’s white paper and DJSI requirements 
  • Conduct a benchmark analysis of peers and broader market practice

Tax transparency report

  • Define the format and content of the tax transparency report and assess which type of reporting is suitable for your company by identifying and analysing different options
  • Engage with internal stakeholders to ensure alignment of the tax transparency report with other ESG reports
  • Conclude on the relevant qualitative and quantitative data to be included in the tax transparency report to avoid any inappropriate disclosures that may deteriorate the competitiveness of your company
  • Categorise different tax types from different geographical and operational areas in a way that simplifies consolidation and guarantees comparability and consistency
  • Set up a data collection process and consolidate as well as harmonise data for the tax transparency report
  • Train and manage local teams to coordinate and harmonise the tax transparency data collection process.
  • Recommend data analytics and machine learning technology, e.g. SAP codes, workflows and ledger interrogation tools 
  • Transform, automate and industrialise the data collection process to achieve operational efficiencies by using our tax technology solutions

Tax transparency report review

  • Review and sense-check of the qualitative and quantitative data covered in the tax transparency report
  • Provide assurance over the quality of data collection and consolidation processes (i.e. verification of the processes and the data collected)
  • Validate assumptions and identify limitations in the data and the data collection process
  • Independent external assurance for the tax transparency report
We’ve created a number of questions to help you assess whether you’re ready for a transparent world of tax:
  • Is tax transparency on your agenda?
  • Have you assessed your transparency needs (legislation, external and internal pressure)?
  • What are the pros and cons for being tax transparent?
  • Do you have a tax transparency strategy in place?

Are you able to answer all these questions to your total satisfaction? Are you comfortable and confident that your current tax transparency strategy is ready for the new world of tax? If not, it’s advisable to contact us to see how we can help you adapt your strategy or create new one.

It’s also advisable to look at the other three pillars of the tax governance framework to see if your business needs any change and support in these areas. Just contact us via the contact form below.

Do you have your tax transparency under control?

Contact us and learn more about it.

Contact us

Charalambos  Antoniou

Charalambos Antoniou

Partner, Tax Function Design and Tax Transparency Leader, PwC Switzerland

Tel: +41 58 792 47 16

Stuart Jones

Stuart Jones

Director, PwC Switzerland

Tel: +41 58 792 45 16