FAR:s självskattningstest – ESG Tax maturity assessment
FAR:s självskattningstest för skattehantering ur ett hållbarhetsperspektiv visar en organisations mognadsgrad inom en rad fokusområden. Testet ger möjlighet att tydliggöra utvecklingsbehov och förbättringsåtgärder utifrån varje bolags specifika situation.
Självskattningstestet tar cirka 15 minuter att genomföra och är en bra bas för diskussioner mellan bolaget och dess auktoriserade rådgivare.
Background
On 22 November 2022, EU voted to pass the EU Directive on Corporate Sustainability Reporting Directive (CSRD), which is the EU regulation that will bring financial data, Environmental, Social and Governance (ESG) information and assurance together to be reported to stakeholders. Thus, the importance of the evaluation of today’s businesses has grown significantly and affects all parts of the business. Social accountability is at an all-time high and people continue to demand greater transparency and improved standards in governance, the tax area is no exception. Legislators, shareholders, employees and the public are expecting companies to be clear and open about their approach to tax. ESG stakeholders view the public disclosure of a company’s approach to tax, the amount of taxes paid, and where those taxes are paid as important elements of sustainable tax practice. Such tax transparency is about trust.
Furthermore, tax is playing a critical role in the developments when institutional investors, investment managers and portfolio companies are starting to use this information as a critical part of its risk management process to differentiate their business and to make informed investment decisions.
The considerations of establishing an ESG tax strategy often begin with the evaluation of the tax risk appetite and the company’s approach to tax in general. The benefits with having a clear statement on the company’s approach to tax may be an increasing transparency and accountability of the company’s current and future risk profile for the business, improving decision-making on risk mitigation as well as strengthening risk awareness as part of an enterprise-wide risk culture. Thus, organizations must determine if short-term sacrifice is worth the upside and on how to deliver on its ESG tax promises. The key is to strive to ensure that company’s tax governance is fit for today’s business environment and having a clear policy toward tax transparency. ESG goals, including tax, must be connected across departments and teams to meet the group’s strategic outcomes. It is therefore important that the tax function is an integrated part of a company’s ESG journey. This connection requires the right framework for top-down, bottom-up, and lateral alignment.
FAR:s självskattningstest för skattehantering ur ett hållbarhetsperspektiv visar en organisations mognadsgrad inom en rad fokusområden. Testet ger möjlighet att tydliggöra utvecklingsbehov och förbättringsåtgärder utifrån varje bolags specifika situation.
Självskattningstestet tar cirka 15 minuter att genomföra och är en bra bas för diskussioner mellan bolaget och dess auktoriserade rådgivare.
Background
On 22 November 2022, EU voted to pass the EU Directive on Corporate Sustainability Reporting Directive (CSRD), which is the EU regulation that will bring financial data, Environmental, Social and Governance (ESG) information and assurance together to be reported to stakeholders. Thus, the importance of the evaluation of today’s businesses has grown significantly and affects all parts of the business. Social accountability is at an all-time high and people continue to demand greater transparency and improved standards in governance, the tax area is no exception. Legislators, shareholders, employees and the public are expecting companies to be clear and open about their approach to tax. ESG stakeholders view the public disclosure of a company’s approach to tax, the amount of taxes paid, and where those taxes are paid as important elements of sustainable tax practice. Such tax transparency is about trust.
Furthermore, tax is playing a critical role in the developments when institutional investors, investment managers and portfolio companies are starting to use this information as a critical part of its risk management process to differentiate their business and to make informed investment decisions.
The considerations of establishing an ESG tax strategy often begin with the evaluation of the tax risk appetite and the company’s approach to tax in general. The benefits with having a clear statement on the company’s approach to tax may be an increasing transparency and accountability of the company’s current and future risk profile for the business, improving decision-making on risk mitigation as well as strengthening risk awareness as part of an enterprise-wide risk culture. Thus, organizations must determine if short-term sacrifice is worth the upside and on how to deliver on its ESG tax promises. The key is to strive to ensure that company’s tax governance is fit for today’s business environment and having a clear policy toward tax transparency. ESG goals, including tax, must be connected across departments and teams to meet the group’s strategic outcomes. It is therefore important that the tax function is an integrated part of a company’s ESG journey. This connection requires the right framework for top-down, bottom-up, and lateral alignment.
1.
2.
3.
4.
5.