In this podcast, Alwyn Hopkins, Sustainability Strategy and Portfolio Lead, Tax, discusses sustainability and growing business interest in total tax contribution with Fay Parfitt and Binka Layton.
Pressure continues to grow on companies to report on their environmental, social, and governance (ESG) priorities. Increasingly, we are seeing tax intersecting with ESG matters, particularly around overall tax transparency and reporting.
Tax transparency, in particular, a group’s total tax contribution (TTC) is an element of reporting that represents a key pillar in a group’s social and governance disclosures. TTC essentially details the types of taxes that a business pays, the jurisdiction of such payments, and how they contribute to wider societal and environmental purposes.
At present, TTC is a voluntary framework and certain industry sectors already publish tax transparency reports. Increasingly, businesses are looking to demonstrate that they pay their fair share of taxes. At the same time, multinationals expect to be asked for more detailed tax information as part of the base erosion and profit shifting (BEPS) 2.0 project, launched by the Organisation for Economic Co-operation and Development (OECD).
TTC can be the first practical step to take in wider discussions in this area. Fay and Binka share their experience around how tax functions can pro-actively gather relevant tax data and help businesses manage their narrative regarding tax payments borne by the business and collected by it. They share examples of what they are seeing in practice.
Learning outcomes:
- Understand the role TTC can play in a business’s ESG agenda.
- Learn practical ways in which tax leaders and professionals can employ TTC.
Presenters
Alwyn Hopkins
EY UK&I Advanced Manufacturing and Mobility Sustainability LeaderBinka Layton
Director, UK&I Tax and Law, Ernst & Young LLPFay Parfitt
Partner, UK&I Tax, Ernst & Young LLPPodcast
Duration 10m 05s