Companies’ total tax contribution – How can this be evidenced?

The global tax environment is experiencing major changes and the debate on corporate tax levels is a repeating theme in the media. By identifying and measuring a company’s total tax contribution to public finances one can, in a clear and simple manner, communicate the operations’ total contribution to society.

The debate on how much, or how little, taxes corporates pay has intensified at global level, with the focus of this debate being exclusively on corporate tax. However, in today’s global tax environment cororpate tax often actually comprises only a limited portion of a company’s total tax costs. The possibility and capability of evidencing a company’s total tax contribution, in addition to corporate tax, is, therefore, more relevant than ever.The demand of making this information public, in combination with so-called “country-by-country reporting”, increases the transparency of a company’s tax situation, in general and of its total tax contribution, in particular.

PwC’s report,”The Total Tax Contribution Framework – Over a decade of development” provides an overall view of what companies can do to increase communication regarding their total tax contribution to public finances.