The ESG implications arising from an organisation’s approach to tax are rapidly becoming a priority for in-house tax leaders and finance teams, driven by expectations demanded by a wide range of stakeholders.
Tax directors and finance teams need to understand how tax impacts the sustainability of an organisation. This priority now stands alongside the multitude of statutory reporting demands placed upon in-house tax leaders and together with the requirements to drive value creation. The challenge is moving this from a conceptual direction of travel to understanding how the business is positioned, developing a cohesive action plan and then charting, monitoring and reporting progress.
The Tax Sustainability Index (TSi) offers organisations a structured, objective, and measurable basis to assess their tax sustainability. This index enables organisations to:
- position themselves with reference to their approach, strategy and compliance in respect of tax sustainability
- benchmark themselves against other organisations and peers
- understand perceptions of how tax ties in with the ESG approach and strategy within the wider organisation, and
- assess relative performance over a period.
The results can be used to develop a defined plan to enhance the organisations tax sustainability and to communicate progress with key stakeholders.
