Tax transparency is an indicator of a company’s contribution to the countries and societies it operates in and reflects its values. We explore issues around aggressive tax avoidance and our dialogue with companies on this topic.
Corporate tax transparency is not only seen as an indication of a company’s contribution to the countries and societies it operates in, but also as a reflection of its values.
As a result, headlines of aggressive tax avoidance have had profound impacts on public trust and led to consumer boycotts and fines. Notably, these scandals have occurred in Big Tech, given the number of intangible assets and thus the ease of transfer pricing to lower tax jurisdictions. However, corporate tax scrutiny goes beyond this sector. Greater corporate tax transparency is critical for investors to accurately evaluate and assess a company’s business strategies, and risk management, given the financial materiality of the potential fines and risks.
This Viewpoint sets out our active ownership expectations on corporate tax transparency for issuers.
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Read more about why corporate tax transparency matters, our expectations for best practice and the lowdown on our engagement efforts. Download the full viewpoint to discover more.