The global tax system has been the subject of much debate in recent years and never more so than in 2013. Fiscal deficits around the world have led to increased scrutiny of taxes paid by large corporations, and civil society organizations have run high-profile campaigns using new media to put out their messages. While tax planning may comply with the letter of the law, it may be seen by some as not operating within the spirit of the law; overseas tax havens have come under particular criticism.
In this study, we report on the findings from our analysis of key tax ratios of 55 large companies in the global consumer products market. The analysis provides insight into the effective tax rate (“ETR”) and current tax rate reported by these companies, the trend over the last three years, and drivers of the ETR. The study uses publicly available data for the three years up to June 2013, sourced from data providers and individual company accounts. By using publicly available information, we can include any listed company, which gives us good coverage of the sector from which to identify trends.