KPMG outlines tax disclosure framework
British companies should engage in an open and constructive debate on tax transparency, says Big Four
NEW LEGISLATION that will compel large businesses to publicly disclose their tax strategy as it relates to UK tax has led KPMG to publish a discussion document on the topic.
Last month, financial secretary to the Treasury David Gauke proposed a “legislative requirement” for all large businesses to publish their tax strategy, “enabling public scrutiny of their approach towards tax planning and tax compliance”.
The Big Four firm’s report, “Developing a common framework for disclosing tax information“, outlines a possible framework for companies to consider when publishing tax information. It follows discussions with a number of UK-headquartered multi-national groups.
Areas which could be included should centre on the common themes of strategy and approach to tax, tax risk governance, business model, tax contributions and specific information in relation to material issues.
Jane McCormick, senior tax partner at KPMG in the UK, said: “Tax transparency and reporting are among the hottest issues in tax today. The debate around greater tax transparency by companies is becoming increasingly prominent with a growing number of calls from various parts of civil society for companies to be transparent about where they operate around the globe, where they make their profits, where they pay their taxes and how much tax they pay.”
