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FTSE 100 more open about tax policy

The largest listed firms in Britain are proving to be more transparent when it comes to tax, with close to 50% of companies on the FTSE now disclosing details with regards to how they approach tax, according to a PricewaterhouseCoopers (PwC) report.

In addition to tax policy details, firms are disclosing the range of tax they are paying. Due to the corporation variety being overtaken as the largest business tax, 24 firms are reporting information of other categories compared to just 19 in 2013.

Andrew Packman of PwC said firms are beginning to see the advantage of voluntarily disclosing all taxes.

The report further discovered that geographical reporting now features in the plans of the largest firms in Britain, with certain mandatory requirements in place. Twenty-two of the FTSE 100 companies are providing a breakdown of global taxes, whether by country or region, compared to just 17 last year.

Packman said that although certain companies are reporting worldwide taxes, it needs to be understood that others have their operation based almost entirely in the UK. A company therefore could opt out of breaking down global taxes, as it would be pointless.

Small businesses may not be under such an intense microscope and have only domestic tax to be concerned with. However, accountants in the Wirral and up and down the country are still obligated to ensure that their clients’ accounts are recorded as accurately as possible, so it is important that all businesses have an accountant they can trust to do just that.

Posted by Peter
May 22, 2014
Tax

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