The Global Reporting Initiative, the standards body, has launched a new standard on tax transparency reporting, whose drafting was informed by a large number of ESG investors and pension funds.
GRI’s new standard has taken a country-by-country reporting approach, which aims at breaking down financial information for each jurisdiction in which a company operates to avoid profit shifting.
The new tax standard, named GRI 207: Tax 2019, joins GRI’s reporting suite which, albeit voluntary, means companies should not cherry pick tax disclosure.
From January 2021, companies reporting under GRI standards should also report on material tax issues – there is one year to adapt to the new measure, a GRI spokesperson told RI.
Among the technical committee to develop the standard was Alex Cobham, CEO of the Tax Justice Network campaign group.
Quoting research by Australian academics, he said that tax avoidance makes “investors receive no higher return – …