Charlotte Tolman and Michael Molenaars examine the tax governance code as recently presented by VNO-NCW and which has been endorsed by 40+ multinationals.
Listed and non-listed Dutch multinational enterprises including Philips, Shell, Unilever, Akzo Nobel, KLM and Heineken have endorsed the new code and committed themselves to complying with its principles.
In a time when governments worldwide are tackling base erosion and profit shifting, tax governance and transparency have become important aspects of companies’ environmental, social, and governance (ESG) strategies.
The call for better tax governance and increased tax transparency is being answered by both legislative and non-legislative initiatives. VNO-NCW drafted the Dutch tax governance code to provide more transparency and public understanding on the tax position of listed and non-listed Dutch companies. By endorsing the code, multinationals are stating they do not, or will no longer, avoid or evade taxes and will not use tax havens for tax avoidance motives. An endorsement by such a large group of MNEs is internationally a unique event.
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Authors: Charlotte Tolman and Michael Molenaars
Source: Tax Notes International, volume 106, number 12
Publication date: 20 June 2022