Corporate tax governance

Creating a sustainable and transparant tax approach in times of fundamental change

Tax governance on the boardroom agenda

There is a great deal of attention for taxation among politicians and the public. Companies need to take account of countless international trends and initiatives, both tax and non-tax. The strategic role that taxation can play has changed significantly, and attention needs to be paid to the risk of reputation damage. The Tax strategy has become part of the licence to operate, meaning that it’s therefore no longer the exclusive domain of the tax department but of a broad group of stakeholders, and it’s now prominent on the boardroom agenda.

Sustainability strategy

Taxation is gradually being placed more and more in the context of companies’ corporate strategy and sustainability commitments. Under pressure from multiple stakeholders, it’s being seen less as a pure cost item and also as a contribution to society and to achieving the United Nations’ Sustainable Development Goals (SDGs). As a result, directors and supervisors are also taking a hard look at their own tax strategy.

Transparency

Modernisation of the international tax system is also proceeding apace. Multilateral guidelines serve, among other things, to prevent tax avoidance and are leading to increased tax integrity and transparency. Some companies limit themselves to the transparency required by law, such as sharing a Country-by-Country Report with the Tax authorities. Others go significantly further, publishing their tax strategy online and, for example, making an analysis of the Total Tax Contribution publicly available.

Stakeholder engagement

Companies often opt for greater transparency than required by law as soon as they know that stakeholders value it. To that end, they engage with a broad group of stakeholders, including supervisory directors, investors, employees, and clients. That also fits in with the trend in corporate governance: the company’s objective of creating value for shareholders is being broadened out into long-term value creation for stakeholders and for the community in which the company operates.

Tax governance supports a sustainable approach to taxation

Tax governance enables companies to adopt a sustainable approach to taxation. It comprises the formulation of a long-term tax strategy, clear roles and responsibilities, and tax risk management. Finally, tax (transparency)  reports are produced for which an independent party can provide assurance in order to increase value for stakeholders. Do you want to know more? Feel free to contact us for more information.

Publication

Our publication on corporate tax governance and sustainable tax.

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Country overview

A module with high level overview of examples of corporate tax governance measures and initiatives in a number of countries around the world.

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Interviews

A module with interviews with mr. King and mr. Winter, experts in the field of corporate (tax) governance.

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GRI and UN PRI tax requirements

A module with two examples of tax reporting requirements from the Global Reporting Initiative tax standard ‘207: Tax 2019’ and from the UN Principles of Responsible Investment (‘PRI) with its Investor Recommendations on Tax Disclosures.

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Contact us

Marc Diepstraten

Marc Diepstraten

Partner, PwC Netherlands

Tel: +31 (0)88 792 63 58

Eelco van der Enden

Eelco van der Enden

Partner, PwC Netherlands

Tel: +31 (0)88 792 51 38

Sytso Boonstra

Sytso Boonstra

Partner, PwC Netherlands

Tel: +31 (0)88 792 34 70

Edwin Visser

Edwin Visser

Partner, PwC Netherlands

Tel: +31 (0)88 792 36 11

Dave Reubzaet

Dave Reubzaet

Director, PwC Netherlands

Tel: +31 (0)88 792 14 60

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