As of January 1, 2021, all companies that use the Global Reporting Initiative(GRI) framework for their sustainability reporting and have identified tax as a material sustainability issue must apply the GRI 207 standard in their reports. These changes in the framework call for a perspective realignment of companies' tax reporting.
The integration of these requirements poses new challenges for the tax function and requires a variety of measures. To effectively and efficiently implement fiscal sustainability reporting, a digitization strategy is required to operationalize data mining and visualization, as well as readiness for the necessary process adjustments.
WTS provides support in complying with the following tasks:
In all these services, we focus on the needs of all stakeholders of transparent tax reporting.
Familiarizing yourself with the requirements now therefore has the following advantages for you:
Other recommended frameworks for sustainability reporting in addition to the GRI standards are the German Sustainability Code, UN Global Compact and the OECD Guidelines for Multinational Enterprises. GRI is now established as a partner of EFRAG (European Financial Reporting Advisory Group) and is thus significantly involved in the development of a core standard for sustainable business reporting at the European level. It remains to be seen whether and to what extent GRI 207 will become established as a standard in the future or even be implemented in national law. With the draft of a European social taxonomy, another initiative is already in the pipeline, which is intended to supplement the environmental taxonomy known to date. The comments on tax planning and transparent tax reporting are interesting. It remains to be seen which measures will be used to implement these criteria in practice in the future.
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