By Rusen Kumar
Transparency is a core value as businesses firmly believe in long-term sustainable value creation for their multiple stakeholders including the government and society at large. Many businesses remain at the forefront of tax reporting by managing their tax affairs in a succinct and straightforward manner.
Businesses regarding sustainability as a strategic, long-term value driver, and they embed this approach throughout their business value chain.
Businesses also believe that, with their sustainability approach, they will be able to address sustainability challenges, become more competitive and further sharpen their commitment to all stakeholders.
Committed to pay the fair share of taxes and being transparent about what is paid and where it is paid is key to business management. Transparency is an enabler of sustainable development, and corporate must show commitment to support the meaningful disclosure of its economic contribution and has regularly made comprehensive disclosures of tax payments.
Taxes are the lifeblood of societies and nations. These tax revenues enable governments to pay for essential public services, such as health care, education and well-being of the less privileged, whilst ensuring a robust infrastructure is built and maintained for the society at large.
Citizens should have a clear understanding of the revenue gained by their government from the corporate, and its allocation in the country’s economic and social development. When companies provide transparent information about their revenue, the potential for corruption is reduced.
The Tax Transparency Report produced on an annual basis is aimed at enhancing trust between businesses and stakeholders, especially in those countries in which it operates.
The purpose of the Tax Transparency Report is the disclosure of the tax contributions made by the company to the Governments where they operate. Details of the different types and amounts of taxes paid by the company as well as the principles that guide its tax governance are explained in this report. Publishing a Tax Transparency Report is a voluntary effort aiming to maintain transparent dialogue with stakeholders on contributions made to public finances.
Tax Transparency Reports of businesses provide an overview of how they meet their tax responsibilities. It also describes tax principles, tax strategies and trends of particular business. Report requires continue to review the reporting on tax payments and make appropriate improvements in line with any applicable regulatory developments.
(Rusen Kumar writes on CSR, Sustainability, Corporate Governance, Business Affairs and Responsible Business. He is the founder of India CSR Network)