Tax Governance Institute

Since 2007, the KPMG Tax Governance Institute has shared with company stakeholders—board members, audit committee members, C-suite executives, and tax and finance executives—insights and leading practices for identifying, overseeing, managing, and disclosing tax risk issues.

Embracing a new metric

Today, tax risk management has not escaped the growing focus by companies on environmental, social and governance (ESG) principles—initially, as a measurable element used in sustainability indexes, and more recently, with growing recognition that corporate tax strategy and policies can impact a company’s ESG position directly. Couple with increased requirements for tax reporting that is shared among tax authorities and growing demand for company tax transparency by these authorities as well as the company stakeholders and the public at large, tax strategy governance has become an important business issue. These trends, magnified by a world economy hit hard by COVID-19 and the rise of economic nationalism, is making Tax ESG a new, critical yardstick by which businesses may be measured.