As companies prepare for the 2023 SEC filing season, they should also be ready for the inevitable press attention on the effective tax rates of high profile multinationals.  In a Client Alert last year, we predicted a recurrence of press focus on whether companies are paying their fair share of tax.  Since that time, numerous articles have appeared in the general and financial press, Senator Wyden has continued his attack on the tax positions on major pharmaceutical companies and activist shareholders have been initiating proxy battles to force enhanced public tax reporting.

Regardless of whether a company decides to publicly respond, every company should be ready for press about its global tax position.  The need for preparation is obvious, but preparation will take on added significance as companies gear up for mandatory public disclosure of their country-by-country reporting in Europe.  In this blog post, we revisit our recommendations to help companies prepare.Continue Reading Preparing for Bad Press (Redux): Tax Transparency Update

In a recent Legal Update[1], we discussed the emerging intersection between Tax and ESG and highlighted the various external stakeholders pressuring for greater visibility into the global tax positions of multinational companies (MNEs).  One increasingly vocal stakeholder group is activist shareholders.  Recently, a group of institutional investors of a Fortune 50 company initiated a shareholder proposal calling for the company to publicly disclose where and how much tax it pays around the world.  This is only the latest in what is becoming a regular request by activist shareholders.
Continue Reading Tax Meets ESG: Shareholder Activism Expanding to Tax Transparency