Tax Meets ESG: Preparing for Bad Press
In a recent Legal Update, we discussed the intersection between Tax and ESG and the challenges companies will face responding to external pressures for greater transparency into a company’s global tax position. We predicted that once the SEC reporting season began this month, the press would focus on the effective tax rates of high-profile companies. That is exactly what happened recently when a leading national news outlet reported on the tax position of a well-known multinational. The article paints an unflattering picture of the multinational’s global tax position and makes generalized observations on structures it might have used to achieve its tax results. In this blog post, we discuss how companies can prepare for similar reporting.