CEOs say urgent tax reform needed

Nearly two-thirds of CEOs around the world say that the international tax system is in urgent need of reform, and 70 percent say the impact of tax on their company’s growth is among their top concerns, according to a new report by PwC.

In a paper, ‘Tax strategy and corporate reputation: Balancing trust and growth,’ PwC analyses CEO attitudes towards tax policy issues and offers companies an approach for creating coherent tax strategy.

The paper finds that tax strategy and policies are best dealt with by the Board of Directors and should include consideration of such issues as impact on stakeholders, transparency, governance and controls.

“CEOs have a difficult balancing act ahead. The increasing tax burden is a serious concern for many, and changing public attitudes to corporate taxation cannot be ignored,” said Taiwo Oyedele, PwC Nigeria head of Tax and Regulatory Services.

The impact on society of corporate taxes is far beyond the often controversial tax on corporate profits, according to PwC. Companies also pay indirect taxes such as VAT and sales taxes.

“The reality is that tax is a cost as well as an obligation. A well thought out tax strategy balances business cost pressures, national fiscal needs and international tax norms in a sustainable way,” Oyedele said.