While organisations move forward in their endeavours to minimise their environmental footprints through net zero commitments and value chain sustainability strategies, a significant portion of Government funds for social and sustainable programmes also comes from tax contributions. On the other hand, there is a growing trend of external stakeholders demanding more transparency and extensive disclosures from organisations. These factors have made responsible tax a crucial subject in boardroom discussions.
Considering the significance of corporate taxes in influencing society and the increasing attention from external stakeholders regarding the tax practices of businesses, many countries have established frameworks for tax transparency disclosures. In India, a growing number of corporations are voluntarily adopting tax transparency reporting to gain enhanced confidence and trust from the investors’ community and other stakeholders. The myriad benefits of this reporting for organisations include improved tax governance, control and risk management, and reflecting a commitment to sustainable development goals.
Tax transparency reporting is a complex and nuanced process demanding proficiency to ensure all critical aspects of a corporation’s tax policies, tax governance, tax practices, payments, other disclosures and their relevance are reported accurately. To help businesses navigate this process efficiently,