Total Tax Contribution
PricewaterhouseCoopers' Total Tax Contribution is a framework for measuring an organisation’s economic contribution in taxes - the direct and indirect taxes paid by a company as well as those it collects on behalf of the Government. Importantly, the framework makes it easier for companies to collect and report total tax information in a consistent manner, to meet the needs of stakeholders and improve transparency.
The Total Tax Contribution framework focuses on three areas that represent a company’s overall taxation contribution:
- Business Taxes Borne by the business - taxes that impact the Profit and Loss Account
- Business Taxes Collected - from customers and employees that are then remitted to government
- Tax Compliance Costs - incurred in assessing and remitting Taxes Borne and Taxes Collected.
What is your company's overall tax contribution? 2008 Survey
In a business environment where tax is rising up the corporate risk agenda it is important that there is a better understanding of how tax impacts companies and their stakeholders. PricewaterhouseCoopers has developed a framework for reporting a company’s Total Tax Contribution (TTC). This framework is a comprehensive measure of a company’s economic contribution in taxes and is an important component of transparency and better reporting.
The report from the third annual Australian PricewaterhouseCoopers Total Tax Contribution (TTC) study was launched on 21 April 2009. It includes valuable insights from 79 Australian businesses, who together contribute 9% of Australia’s total tax rate. In providing insights into the Taxes Borne and Collected and the cost of compliance, the findings from corporate Australia again emphasise the complexity and inefficiency of the existing tax system, reinforcing the importance of the Henry Review for business.
The report also reiterates the need for businesses to better understand their own tax footprint and opportunities for greater operational efficiency, irrespective of how the Henry Review addresses the complexity of the existing tax system.
In addition to supporting the tax reform agenda, the results are proving to be useful to participants. We have asked participants in the first two surveys for feedback on how they have used their individual results. They indicated the results have been most beneficial for.
- Internal communications - 29%
- Tax function management and planning - 26%
- Industry benchmarking - 20%
- Stakeholder management - 17%
- External disclosures - 4%
- Not at all - 4%
