The right tax is paid in the right place at the right time

A Future-Fit Business commits publicly to a responsible tax policy, and works continuously to ensure that it lives up to this policy, across all its areas of business.

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About this goal

Governments require tax revenue to fund critical services upon which society and business depends. Companies have an obligation to their shareholders to be diligent in their approach to tax payments.

This goal recognizes the fact that through taxation any company must also contribute to the infrastructure it utilizes and relies upon for its success (e.g. transport networks, legal system, healthcare, education, public utilities) and even its existence, meaning that these outcomes are not at odds with each other.

To be Future-Fit, a company must do three things:

It must commit publicly to a responsible tax policy;
It must adopt a transparent approach to tax reporting; and
It must not deliberately seek ways to obey the letter but not the spirit of regional tax laws.

Why this goal is needed

Though legal, tax avoidance strategies allow companies to circumvent paying their fair share.
Losses due to tax avoidance cost an estimated $100-240 billion annually, representing 4-10% of global corporate income tax revenues.
Taxation is a key contributor to the public’s distrust of business.
38% of 7,600 people surveyed across the G20 countries were distrusting of business leaders about tax.
Both developed and developing countries are vulnerable to tax losses through profit shifting.
Revenues from multinational companies are particularly important to government budgets in developing countries – where they represent 10% of total government revenues – compared to 5% in developed countries.

SDGs this will contribute to

9. Industry, innovation and infrastructure
Growth in productivity and incomes, and improvements in health and education, require innovation and investment in critical infrastructure such as transport, irrigation, energy, and information technology.
Learn more about SDG 9
10. Reduced inequalities
Economic growth reduces poverty only if it is inclusive, yet inequality persists within and among countries, and large disparities remain in terms of access to health and education services and other assets.
Learn more about SDG 10