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Tax is a global reality, and today, it demands both a global conversation and, where appropriate, global action.

As the world becomes more interconnected, discussions about who pays tax, both how and when are likely to intensify. Meaningful discussions about responsible tax need to include all stakeholders, in an open, honest and robust dialogue and debate, and at KPMG Acor Tax, we bring together these perspectives from around the world for a sustained, inclusive and productive discussion about the key issues that are affecting and shaping globalization, digitization and taxation.

Over the past years, there has been an increasing attention to and debate about companies’ approach to responsible tax, particularly large multinational companies. In an ever-more transparent world, communication on tax is critical to an organization’s ability to earn and retain public trust.

In Denmark, the importance for companies of demonstrating that tax governance measures are in place has experienced a step change with a strong link to the Responsible Tax agenda. If tax affairs are perceived as irresponsible or aggressive, it may lead to brand and reputational damage. 

In our experience, there are four building blocks to a successful approach to responsible tax:

How KPMG Acor Tax can help

The four key areas we have defined are interdependent. Actions taken to increase your organisation’s maturity in one area will often have a positive spill over effect on another area, whilst improvements in one area may require changes in another first. 

KPMG Acor Tax can help you navigate this situation based on our deep insight and vast experience. The four sections below provide an overview of steps that need to be taken, based on our experience, within the four building blocks. They can be tailored to align with a specific set of principles (e.g. B Team) or reporting requirements (e.g. GRI 207).

Accountability & Governance

  • Draft Group Tax Policies
  • Define Tax Strategy and Tax Risk Appetite
  • Implement processes and controls to manage tax risks across all taxes
  • Analyse and test existing tax control framework 

Relationship with Authorities

  • How to best prepare for entering into cooperative compliance relationships
  • Benchmarking tax authorities’ expectations and requirements across the world
  • Conducting data analytics-driven ghost audits

Compliance & Business Structure

  • Conducting tax risk assessments and compliance health checks (spot checks)
  • Ensuring DAC6 compliance and implementing an MDR process
  • Implementing IFRIC 23 process and reporting

 

Transparency & Public Disclosure

  • Prepare or review tax transparency reports, including public Country-by-Country Report, Total Tax Footprint and impact of COVID-19 aid packages
  • Benchmark your public disclosures against leading practices and prepare a plan for closing gaps

    

      

Contact us for more information