There is a lot more to tax obligations than just paying taxes. Undertakings must collect and process tax obligation information, which contributes towards greater tax transparency and allows to demonstrate and even reinforce tax reputation, thus minimizing any related governance risks.
Organizations are also increasingly called upon to adopt good tax governance practices which are expected to bring multiple benefits, both for the organizations themselves and for the State and society in general, by improving good practice levels, transparency and trust in the business sector, factors that are particularly important for undertakings wishing to be governed by ESG criteria.
Governance structures are therefore increasingly required to make tax-related decisions that have a behavioral impact beyond the undertaking or business group proper, namely on all stakeholders, including Tax Administration.
Tax-related decisions will be evaluated independently as a criterion for gauging good management and, to this extent, as evidence of a duly consolidated and society-committed corporate responsibility and sustainability policy.