The Finance Act 2016 requires large UK companies to disclose key aspects of their tax strategies. This study reviews disclosures from selected UK companies and finds that, although the companies comply with formal requirements, their reporting is high-level and offers limited insight into underlying tax risk management practices. Critical areas, such as international transfer pricing, are often addressed only superficially. Overall, the regime appears more effective at signaling general tax attitudes than at enabling meaningful evaluation. The article concludes that more detailed guidance or targeted disclosure requirements may be necessary to achieve the intended transparency objective.
Rossing et al. (Thu,) studied this question.