What are the UK CEOs’ thoughts on tax for the year ahead?
09 August 2016
In a recent blog on our 19th CEO survey, PwC’s Global Head of Tax, Rick Stamm, looked at the role that tax can play in meeting the ever-increasing expectations that stakeholders have for business around a broad range of issues. PwC’s CEO survey shows that for many CEOs the purpose of their business is not only to generate as much profit as possible for their investors, but also to benefit their employees, the communities where they operate and society more generally.
A business’s tax payments are one of the most significant contributions that it makes to society. In the UK, we have seen a trend of increasing interest in this contribution and more transparency around tax by business partly as a response. The increased level of transparency around tax is clear from our latest review of the tax disclosures of the FTSE 100. While stakeholder expectations are a driver of increased transparency, this is also influenced by advances in technology and in particular by the popularity of social media, creating an increased awareness of the issues among a wider range of stakeholders, driving a need for more and clearer communication.
The global blog commented, “the full extent of that tax contribution is not well articulated and is consequently not well understood”, which ties in with our UK report, as much of the focus continues to be on corporate income tax, although other taxes are becoming steadily more important. Total Tax Contribution continues to be one of the most useful ways in which companies can demonstrate the full range of their tax contributions and should be considered by those CEOs that are looking to demonstrate the full value that their businesses add to the communities in which they operate.
For more insights of UK CEOs’ thoughts on tax, contact Andrew Packman.
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