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28 | The South African Insurance Industry Survey 2016
Globally tax transparency has been receiving a lot of Apart from the OECD actions to improve tax transparency, Change in attitude
attention. The OECD Base Erosion and Profit Shifting governments are looking at introducing legislation to The attitudes of governments, regulators and tax
Project states in Action13: improve transparency and Tax Risk Management. As authorities towards tax governance and Tax Risk
part of the measures to progress large business tax Management are changing (and rightfully so). Regulators
“The Base Erosion and Profit Shifting compliance, Her Majesty's Revenue and Customs and tax authorities are increasing their scrutiny of the
(BEPS) Action Plan adopted by the (HMRC) issued a document entitled: Improving Large approach companies take regarding the management of
Organisation for Economic Cooperation Business Tax Compliance. This document states the their taxes. Minister of Finance Pravin Gordhan stated the
and Development (OECD) and Group of following: following around governance:
Twenty (G20) countries in 2013 recognised
that enhancing transparency for tax “To respond to the challenges described “The issues around tax, tax compliance,
administrations by providing them with in Chapter 1, the Government proposes and tax planning need to be on the
adequate information to assess high-level to introduce a legislative requirement corporate governance agendas of company
transfer pricing and other BEPS-related that large businesses must publish their boards. SARS hoped to do a lot more
risks is a crucial aspect for tackling the tax strategy as it relates to or affects to interact with companies and boards
BEPS problem. Against that background, UK taxation. The strategy should be to expose them to what was happening
the September 2014 Report on Action 13 formalised, articulated and owned by elsewhere in the world on the one hand,
(the “September 2014 Report”) provides an Executive Board member within the but also to indicate the urgency for them
a template for Multinational Enterprises business.” to bring tax onto the corporate governance
(MNEs) to report annually and for each tax agenda.”
jurisdiction in which they do business the
information set out therein. This report
is called the Country-by-Country (CbC)
Report.”
