The world’s attention on the consequences of what businesses do, pushes environmental, social and governance (ESG) to the forefront of leadership agendas globally. The responsibility of companies to demonstrate the positive impact they are making is creating a complex stakeholder environment that tax leaders must learn to navigate.
Communication on tax is critical to an organisation’s ability to earn the public’s trust and maintain their licence to operate. Meaningful responsible tax discussions need to include all stakeholders, in an open and robust dialogue.
In Denmark, the importance for companies of demonstrating that tax governance measures are in place to support a responsible approach to tax has experienced a step change. If tax affairs are perceived as irresponsible or aggressive, it may lead to brand and reputational damage. Boards of directors must therefore ensure that their tax affairs are managed responsibly, and must be willing to transparently report on their efforts and contributions as part of their sustainability reporting.
At KPMG Acor Tax, we deliver targeted approaches to help tax leaders embrace their role in the broader ESG agenda through KPMG Tax Impact Reporting, while also engaging in sustained, inclusive and cohesive discussions through the KPMG Global Responsible Tax Project on all ESG focus points within tax
