HMRC’s desire to ensure large businesses are held publicly accountable for meeting their UK tax compliance obligations shows no sign of abating.
Large businesses will be required to publish their tax strategy on the internet as a separate document or self-contained part of a wider document. The measure is aimed at promoting greater transparency of an organisation’s approach to tax risk and how this is managed through its governance and internal control environment. It ensures tax remains firmly on the boardroom agenda by ensuring that the tone from the top and approach to governance processes are clear for all to see.
HMRC has provided high-level guidance regarding the content it would expect to see in the strategy document, but this perhaps raises more questions than it answers. It is clear that there cannot be a one-size-fits-all approach.