Making companies publicly disclose the amount of tax they pay on a country-by-country basis could curb international tax avoidance and cut the risks of damaging disputes with local authorities, according to campaigners who are pressing the issue on US boardrooms.
A coalition of investors and activists is seeking shareholder support for increased tax transparency at the annual meetings of several of the largest US companies in the coming weeks, making it the latest frontier in the battles over environmental, social and governance reporting.
“Investors need to know how close to the line corporate tax strategies are, so they can assess how much risk they are willing to take,” said Ian Gary, executive director of the Financial Accountability and Corporate Transparency Coalition.