Trust in businesses’ tax affairs continues to be an important topic of debate. The CBI’s Everyone’s Business tracker has consistently found transparency around tax as one of the top issues that individuals care about. Alongside treating employees well increased tax transparency is one of the most important ways that businesses can contribute to building trust in the private sector.
The first step in increasing transparency and trust is making sure that your businesses adheres to responsible tax management practices. Together with its members the CBI has developed a statement of tax principles to promote and affirm responsible business tax management.
These principles are based on five key observations
- Public trust in the tax system is a vital part of any flourishing democracy
- Transparency and co-operation between HMRC and business contributes to greater compliance and a better functioning tax system
- Most businesses comply fully with all applicable tax laws and regulations, recognising the obligation of the UK government to protect a sustainable tax base
- Tax is a business expense which needs to be managed, like any other, and therefore businesses may respond to legitimate tax incentives and statutory alternatives offered by governments
- UK businesses contribute significantly to the UK economy and pay a substantial amount of tax comprising not only corporation tax, but also National Insurance, business rates and other taxes
Download our statement of tax principles to find out how it can be applied to your business.