CPABC in Focus May/June 2017 | Page 30

Should Your Company Care about the Tax Transparency Movement?
By Felicity Withington-Bandic, CPA, CMA, and Michael Sabatino, CPA, CA

“Tax transparency” —is this just another buzz phrase that will ultimately fade away without effecting substantial change? Or is it an emerging trend to which companies should pay attention?

Across the globe, stakeholders are becoming increasingly interested in tax transparency both as a mechanism to combat tax-planning initiatives that are perceived to be aggressive and as a response to public interest in the tax practices of multinational corporations. Mid-sized BC companies and companies that are not in extractive industries should monitor this evolution closely. Larger BC companies—especially those in extractive industries—should pay even closer attention, as the tax transparency movement may be more germane today.


Some companies’ existing income tax models will need to be re-evaluated to prepare for compliance with full tax transparency.