Barbara Strozzilaan 336
1083 HN Amsterdam
The Netherlands
gssbsecretariat@globalreporting.org

Basis for Conclusions for GRI 207: Tax
2019
Summary of Public Comments on the Exposure Draft of
the Standard, and GSSB Responses
Date

5 December 2019

Description This document sets out the significant issues from public comments received on
the exposure draft of the Standard for tax and payments to governments (nowknown as GRI 207: Tax 2019), during the public comment period from 13
December 2018 to 15 March 2019. It also outlines the GSSB responses to thesignificant issues based on Technical Committee discussions andrecommendations.
The full set of individual comments received are available to download from the
GSSB website.
GRI 207: Tax 2019 can be downloaded here.

© GRI 2019

Contents
About this document ................................................................................................................................................. 3
Introduction ................................................................................................................................................................. 3
Background and objectives for the development of GRI 207 ...................................................................... 3
Scope of the public comment .............................................................................................................................. 4
Overview of official public comment submissions .......................................................................................... 4
Public comment form ........................................................................... Error! Bookmark not defined.
Feedback via email.............................................................................................................................................. 4
Total participation during the public comment period ................ Error! Bookmark not defined.
Basis for Conclusions................................................................................................................................................. 6
Significant issues and GSSB responses ............................................................................................................... 7
General themes................................................................................................................................................... 7
Disclosure XXX-1 Approach to tax ............................................................................................................ 7
Disclosure XXX-2 Tax governance, control, and risk management ..................................................... 9
Disclosure XXX-3 Stakeholder engagement and management of concerns related to tax ............ 9
Topic-specific disclosures ............................................................................................................................... 11
Disclosure XXX-4 Entities and activities by tax jurisdiction ................................................................. 13
Disclosure XXX-5 Country-by-country reporting .................................................................................. 14
Annexes ...................................................................................................................................................................... 17
1.

Overview of questionnaire ....................................................................................................................... 17

2.

Overview of respondents ......................................................................................................................... 18

3.

Public comment submissions by representation, constituency, and region ................................ 23

4.

List of stakeholder workshops ................................................................................................................ 24

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About this document
This document summarizes the significant issues from the public comments received on the
exposure draft of GRI topic-specific Standard: Tax and Payments to Governments (now titled GRI
207: Tax 2019), during the public comment period from 13 December 2018 to 15 March 2019.
This document incorporates the comments received via the public comment form hosted on the
GRI tax and payments to governments project page (this page is now titled ‘Development of GRI
207: Tax 2019’), and official feedback submitted via email. Where relevant, it also references
comments made at stakeholder workshops held during the public comment period.
All comments received, together with an analysis of the issues raised, were considered by theTechnical Committee on tax and payments to government. Their recommendations were sharedwith the Global Sustainability Standards Board (GSSB) for review and approval.
This document provides a summary of the GSSB responses to the significant issues raised during the
public comment period.
The full set of individual comments received via the public comment form and via email are available
here.

Introduction
Background and objectives for thedevelopment of GRI 207
The project proposal for disclosures on tax and payments to government was approved in May 2017by the Global Sustainability Standards Board (GSSB), GRI’s independent standard setting body.
The primary objective of this project was to develop new, specific disclosures related to tax andpayments to government, which would be considered for incorporation into the GRI Sustainability
Reporting Standards (GRI Standards).
A multi-stakeholder technical committee was formed for the project. More information about the
project scope and objectives can be found in the project proposal.
The project proposal specified that the outcomes of the project could take several forms. The
Technical Committee on tax and payments to government recommended the inclusion of a new
dedicated topic-specific standard. This recommendation was presented at the GSSB meeting on 28
June 2018.
The development of GRI 207: Tax 2019 was carried out in line with the GSSB Due Process Protocol.
GRI 207 was approved by the GSSB in September 2019 and released on 5 December 2019.

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Scope of the public comment
The exposure draft was open for public comment from 13 December 2018 to 15 March 2019.
Respondents were asked to provide feedback on whether the proposed disclosures were
understandable, feasible, critical and complete.
The GSSB also asked for feedback on the following specific areas:•••

New terms and definitions included in the glossary;
Whether the organization is subject to any existing reporting requirements on tax andpayments to government and how these compare to the exposure draft; andWhether, based on the exposure draft, the respondent predicted that the topic might bematerial for their organization.

Respondents were also provided with an opportunity to submit any other feedback on the exposure
draft.
A range of outreach activities were carried out during the public comment period, including
stakeholder workshops and webinars. Comments collected during these activities, though notconsidered official public comment submissions, were also taken into account when they aided
understanding of the official submissions, or when they flagged a significant issue that was not raisedin the official submissions.
Any comments that related to areas outside the scope of GRI 207 (such as requests to develop
sector guidance) has been directed to the appropriate team or project for consideration.

Overview of public comment submissions
Stakeholders were able to give feedback on the exposure draft via the public comment form hostedon the GRI tax and payments to governments project page (hereafter public comment form), and/or
directly via email. The public comment form included the draft Standard and a short questionnaire(see Annex 1 for an overview of questions) about specific contents of the draft Standard.
Respondents who wanted to provide additional feedback on the exposure draft, or an official letteror statement, could do so via email to tax@globalreporting.org. Any feedback received by email was
reviewed and analyzed along with the comments received through the public comment form.

Total participation during the public comment period
There were 83 submissions1 from 109 individuals and organizations2 received during the publiccomment period. The submissions came from all five stakeholder constituencies represented by the

1 Four additional submissions were received that did not meet the deadline or the requirements of the Due

Process Protocol. These were not considered official submissions but were reviewed and taken into accountwhen they aided understanding of the official submissions.
2This number only includes organizations that were explicitly listed as submitters; it does not include
organizations or individuals who are members of a representative group, such as an industry association ortrade group, that made a public comment submission.

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GSSB: business enterprise, civil society organization, investment institutions, labor, and mediating
institutions.
For more detail, see:•

The full set of individual comments received via the public comment form and via email,available to download from the GSSB website;•

Annex 2 for an overview of respondents who provided feedback via the public comment
form and via email;•Annex 3 for a breakdown of public comment submissions by representation, region, andstakeholder constituency.

Approximately 250 people attended stakeholder events in Amsterdam, Brussels, London, Boston,Phoenix, Johannesburg, and online. Annex 4 lists the date and number of attendees for each event.

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Basis for conclusions
In line with the Due Process Protocol, this section summarizes the significant issues raised byrespondents, outlines proposed changes to exposure draft, and explains the reason(s) why
significant changes recommended by a respondent(s) were, or were not, accepted by the GSSB.
The issues included in this section are either significant themes raised by a large number of
respondents, or issues that were brought up by a few respondents but led to a significant change in
the Standard.

Notes to assist the reader
1. This section includes references to both the exposure draft and the final Standard. For
reference, the disclosures for both are listed below. The significant issues are organized basedon the structure of the exposure draft.
The exposure draft consisted of the following five disclosures:Management approach disclosures•

Disclosure XXX-1 Approach to tax and payments to governments•

Disclosure XXX-2 Tax governance, control, and risk management•

Disclosure XXX-3 Stakeholder engagement and management of concerns related to
tax and payments

Topic-specific disclosures•

Disclosure XXX-4 Entities and activities by tax jurisdiction•

Disclosure XXX-5 Country-by-country reporting

The final Standard, GRI 207: Tax 2019, consists of the following four disclosures:Management approach disclosures•

Disclosure 207-1 Approach to tax•

Disclosure 207-2 Tax governance, control, and risk management•

Disclosure 207-3 Stakeholder engagement and management of concerns related totax

Topic-specific disclosures•

Disclosure 207-4 Country-by-country reporting

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2. When significant issues are described in the next section, the following qualifiers are used toindicate the approximate number of submissions3 that provided the feedback:Qualifier3

Number of submissions

One respondent

1

A few respondents

2% - 6%

Some respondents

7% -18%Many respondents

19% - 43%

Approximately half of respondents

44% - 54%

The majority respondents

55%+

Significant issues and GSSB responses
General themesa) Name and scope of the Standard
A number of respondents and participants at stakeholder events noted that the Standard was
primarily focused on tax reporting and did not comprehensively cover other payments togovernments.
GSSB response: The Standard as it has been developed focuses on the contribution and impact oforganizations’ tax practices and does not comprehensively cover non-tax related payments to governments.
The final title of the Standard is GRI 207: Tax 2019 to better reflect its content. In addition, GRI 201:
Economic Performance 2016, which incorporates reporting on payments to governments, will beconsidered as part of the planned review of the other Standards in the 200 series (economic topics).

Disclosure XXX-1 Approach to taxa) Reporting on the use of tax havens
A few respondents suggested that reporting on the use of tax havens be required as it is a key
indicator of the reporting organization’s approach to tax. In contrast, one respondent suggested that
it is not feasible for organizations to report in detail on their use of tax havens.
Some respondents suggested using an alternative term or defining the term ‘tax haven’. It wasrecognized that there is no globally accepted definition or list for tax havens.
GSSB response: The reference to ‘tax havens’ is provided as an example of the types of tax practices areporting organization can describe to illustrate its approach to tax. Organizations can report on the use of
tax havens where it aids in explaining their approach to tax.

3 For the purposes of these qualifiers, one submission is considered as one respondent.

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It is recognized that there are ongoing discussions in a number of international forums about the appropriate
term and definition that can be applied to describe ‘tax havens’. Given these discussions, the GSSB do not
feel it is their role to introduce or validate any single term or definition. The general meaning of the term tax
haven is well understood and commonly used. If it is important for understanding that a reportingorganization uses an alternative term or defines the concept, they will be able to do so in their reporting.
b) The availability and scope of an organization’s tax strategy
Some respondents suggested that the reporting of the organization’s tax strategy in full is preferable,
and that the organization should be required to publish the full strategy or an explanation of why it is
not available.
Some respondents also commented that organizations might have a tax strategy or tax strategies
that vary in scope and application, and, for example, an organization could have both global and local
tax strategies. Respondents suggested including guidance on how an organization is to report on its
tax strategy in these scenarios. A number of specific suggestions were made, including specifying apreference for the reporting of the global strategy and requiring the reporting of any entities orjurisdictions not covered by the tax strategy.
GSSB response: Disclosure 207-1 (Disclosure XXX-1 in the exposure draft) requires the reportingorganization to describe its approach to tax. The requirement to report on whether the organization has a
tax strategy and, if so, a link to this strategy if publicly available, forms part of this description and will be anindicator of the organization’s approach to tax and tax transparency. Guidance for Disclosure 207-1 prompts
the organization to provide an abstract or summary of its tax strategy if it is not publicly available. If anorganization has chosen not to make its tax strategy public, this does not limit the requirement for theorganization to describe its approach to tax.
The reporting organization might compose its tax strategy or tax strategies differently depending on a range
of factors and organizational preferences. The guidance has been expanded to clarify how the organization
can report in a range of scenarios, including if the organization has a tax strategy that applies to a smaller
number of entities or tax jurisdictions than is covered by the report, or if the organization has tax strategies
that apply to individual entities or tax jurisdictions as well as a more expansive strategy.
c) Reporting on the approach to regulatory compliance
A few respondents suggested that the guidance for reporting on the approach to regulatorycompliance is subjective, while others expressed concern about a reporting organization’s ability toreasonably interpret or comment on the intent of regulatory requirements. One respondent
mentioned that the guidance seems to suggest that organizations should pay more tax than isrequired if they believe the legislation does not reflect the intended ‘spirit’.
A few respondents questioned the need for this requirement and suggested that if reporters provide
a link to their tax strategy, this would ensure the reporting of their approach to regulatorycompliance.
GSSB response: It is acknowledged that there is a level of subjectivity to concepts such as ‘the letter of thelaw’ and ‘the spirit of the law’. However, organizations commonly make statements about seeking to comply
with the ‘letter of the law’ and/or the ‘spirit of the law’ to describe their approach to tax. The Organisation
for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises also
use these terms to describe the expectations of organizations in respect to tax.
The guidance has been revised to focus on the ‘intention(s)’ of the organization toward regulatory complianceand to specify that a reporting organization can use statements it has made in its tax strategy or otherrelevant documents, such as policies, standards, principles, or codes of conduct, to respond to this reporting

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requirement. It also directs reporting organizations to the ‘Taxation’ chapter in the OECD Guidelines,
where they can find further guidance on the concepts.
d) Reporting on the link between the approach to tax and the economic needs of thecountries in which an organization operates
Many respondents considered the requirement to report on the link between the tax strategy andthe broader economic needs of the countries in which an organization is operating, unnecessary andunfeasible. Some suggested that this would require the reporting organization to first determine thebroader economic needs of individual countries, which will be challenging and might be inappropriate
for an individual organization to determine. One respondent suggested that it is unlikely anorganization’s approach to tax or its tax strategy take into account the economic situation of all thejurisdictions in which it operates.
A few respondents proposed that the words ‘and to the broader economic needs of the countries inwhich the organization operates’ be deleted from this requirement, while others requested further
clarity to understand this part of the requirement.
It is noted that some respondents expressed explicit report for this reporting requirement.
GSSB response: The words ‘and to the broader economic needs of the countries in which the organization
operates’ have been deleted from the reporting requirement (Disclosure 207-1-a-iv in the final Standard).
The reporting organization is still required to report on how its approach to tax is linked to its business andsustainable development strategies.

Disclosure XXX-2 Tax governance, control, and risk managementa) Reporting on embedding the approach to tax
Some respondents suggested including in the guidance additional examples of initiatives that support
adherence with the approach to tax or tax strategy.
GSSB response: The list of examples of how the approach to tax may be embedded in the organization is notintended to be exhaustive but constitutes illustrative guidance. The list has been revised to better reflect thetypes of initiatives suggested by respondents, including adding the example of remuneration or incentive
schemes for the person(s) responsible for implementing the tax strategy, as this can be a strong indicator ofpractice being aligned with intention.
b) Reporting on the approach to tax risksSome respondents suggested including additional examples of how tax risks are identified, managed,
and monitored in the guidance.
GSSB response: The list of examples that show how an organization might identify, manage, and monitor tax
risks is not intended to be exhaustive. The guidance has been expanded to confirm that when reporting on
the approach to tax risks, the reporting organization can refer to any internal control framework or generally
accepted risk management principle that it applies to tax.

Disclosure XXX-3 Stakeholder engagement and management of concerns
related to taxa) Reporting on engaging with tax authorities
Some respondents suggested that the reporting of further information on specific types ofengagement with tax authorities, such as tax rulings, tax disputes, and submissions to government
inquiries would fill an existing transparency gap.

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A few respondents suggested that this information would be easier to understand if reported byjurisdiction. In order to get insight into the organization’s approach to certain tax practices, such asentering into advance pricing agreements or participation in cooperative compliance agreements, it isnecessary to be able to identify the jurisdictions where the organization has entered into suchagreements.
GSSB response: No change has been made to the disclosure (Disclosure 207-3 in the final Standard) or
related guidance. The guidance lists examples of types of engagement that organizations can consider whenreporting on their engagement with tax authorities; however, this list is not intended to be exhaustive.
While reporting on engagement with tax authorities in individual tax jurisdictions might provide insights
relevant to those tax jurisdictions, the value of this information is not considered to adequately justify theadditional reporting.
b) Reporting further detail on the approach to public policy advocacy
Some respondents suggested additional guidance to encourage more thorough reporting on theextent to which a reporting organization uses advocacy to influence public policy on tax. Suggestions
included adding the following examples of public policy advocacy to the guidance:•

Membership in representative associations or financial support to any industry bodies thatparticipate in lobbying for reducing tax accountability or promoting aggressive tax planning;•

Whether and how the organization reviews the alignment of its own approach to the policy
positions of the representative associations of which it is a member of, and the steps it takes
to distance itself and ensure a responsible approach to tax;•

More information on what constitutes ‘lobbying activities’;•

Monetary value spent on lobbying activities; and•A list of political donations.

Two stakeholders requested that the term ‘lobbying’ be elevated from guidance to a reporting
requirement or recommendation in order to reflect the importance of reporting on tax-related
lobbying activities.
GSSB response: No change has been made to the reporting requirement. Public policy advocacy is a termthat encompasses a range of activities, including lobbying. The guidance has been expanded to include
additional examples to show how an organization may report in more detail on its relationship with any
representative associations or committees that participate in public policy advocacy on tax.
GRI 415: Public Policy 2016 addresses the topic of public policy generally, including organizations’participation in the development of public policy through activities such as lobbying and making financial orin-kind contributions to political parties, politicians, or causes.
For organizations that have identified public policy as a material topic, GRI 415 requires reporting on the
total monetary value of financial and in-kind political contributions made directly and indirectly by theorganization. It is considered that there is no viable way to reasonably identify which part of these political
donations is attributable to tax.
c) Reporting on the process for collecting and considering the views and concerns ofstakeholders
Many respondents requested that the disclosure (Disclosure XXX-3-iii in the exposure draft) be
expanded to include all stakeholders by deleting the word ‘external’, as information on engagementwith internal stakeholders, such as workers, is also relevant.
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Other respondents were divided on the relevance of this reporting requirement. A few mentionedthat the information was not of value, with a few respondents suggesting that it be deleted or madea recommendation. Other respondents suggested the reporting of further detail, such as a list of
stakeholders engaged and the issues raised, be encouraged through the guidance.
GSSB response: Stakeholders have the potential to be impacted and to impact on the expectations oforganizations’ tax practices. Having a process by which various stakeholders can engage with theorganization on its tax practices is an indicator of responsible and transparent tax practice.
The reporting requirement (Disclosure 207-3-iii in the final Standard) has been maintained and expanded tocover all stakeholders. The clause ‘including external stakeholders’ has been added to the disclosure tohighlight that reporting on the processes for collecting the considering the views and concerns of external
stakeholders is required.
The guidance has also been expanded to provide further direction on how the reporting organization can
provide additional information on their stakeholder engagement process and its outcome.

Topic-specific disclosuresa) Structure of the topic-specific disclosures
Participants at stakeholder events raised concerns that the expectation listed in the exposure draft
to report both topic-specific disclosures (XXX-4 and XXX-5) was confusing and may not be
adhered to by reporting organizations that report with the ‘in accordance: core option’. A few
stakeholders suggested merging the two disclosures in order to avoid any misunderstanding.
GSSB response: The topic-specific disclosures (XXX-4 and XXX-5 in the exposure draft) have beencombined into a single topic-specific disclosure, titled ‘country-by-country reporting’ (Disclosure 207-4 in the
final Standard) in order to remove the exception to the ‘in accordance: core option’ criteria.
b) Alignment with OECD (BEPS Action 13) country-by-country reporting requirements
Many respondents noted an apparent alignment between the topic-specific disclosures (XXX-4 andXXX-5 in the exposure draft) and the Organisation for Economic Co-operation and Development(OECD) country-by-country reporting requirements (as set out in OECD BEPS, Transfer Pricing
Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report). They considered thatthe alignment between the two frameworks reinforced the value and feasibility of the country-bycountry reporting proposed in the Standard.
In contrast, many other respondents mentioned that there are some inconsistencies between OECD
BEPS and the Standard. Most of these respondents noted that reporting on transfer pricing was
excluded from the Standard and suggested that this be added. A few respondents also identified
differences between the detail of individual reporting requirements compared to OECD BEPS andsuggested this could present challenges for reporting organizations.
Two respondents suggested that definitional inconsistencies could be resolved by allowing more
flexibility in the definitions or compilation requirements. A few respondents suggested that anorganization should be able to publish their OECD BEPS country-by-country reports in response to
the Standard.
The concept of harmonization and alignment was also raised during stakeholder engagement events.
GSSB response: It is acknowledged that aligning with other reporting may reduce the level of effort and costassociated with public country-by-country reporting. All the differences between the exposure draft and OECD
BEPS have been reviewed in this context. Some differences between the requirements set out in the final
Standard and the requirements in OECD BEPS have been retained. Where a difference is retained, it is on

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the basis that the requirement is considered to more clearly provide insight into the organization’s scale ofactivity and its tax practices for a variety of stakeholders.
For example, unlike OECD BEPS, the final Standard does not require a reporting organization to reportrevenues as a result of transactions between entities, or related parties, within the same tax jurisdictions. An
organization’s total revenues often comprise revenues generated from transactions with third, or unrelated,parties, and revenues generated from transactions with other entities within the organization, or relatedparties. The final Standard does not require the organization to report transactions between entities, or
related parties, within the same tax jurisdiction as these transactions do not affect the tax base of theorganization. This is considered a more appropriate indicator in the context of tax reporting than aggregatedrevenues, which face the risk of local revenues being double-counted and creating a misleading impression
about the organization’s scale of activities in a jurisdiction.
This same rationale is also applied to profit/loss before tax and tangible assets other than cash and cash
equivalents, though for these two requirements, consolidation is an option but is not mandated. A number ofother differences between the two frameworks are discussed in this basis for conclusions under relevant
sections.
In response to the comment on transfer pricing, it is acknowledged that as part of an organization’s OECD
BEPS reporting to the tax authority/ies, it will submit a transfer pricing analysis related to transactions
between an entity and associated entities in different countries. However, this information is extensive andcomplex, and is considered infeasible and impractical to report. Based on these considerations, reporting ontransfer pricing has not been included as a requirement in the final Standard.
c) The availability of information and current reporting practice related to tax
A few respondents raised a concern that there was a potential challenge associated with the timingof sustainability reporting in comparison with when annual tax returns and OECD BEPS country-bycountry reports are submitted to national tax authorities. It was flagged that existing reporting
practice would make it difficult to prepare the information required by the topic-specific disclosures(XXX-4 and XXX-5 in the exposure draft) in time for sustainability reporting.
The OECD BEPS, Transfer Pricing Documentation and Country-by-Country Reporting, Action 13 - 2015
Final Report suggests that national tax authorities require organizations to prepare and submit their(non-public) country-by-country reports within 12 months after the end of the reported
financial/fiscal year.
One respondent suggested that there needs to be greater flexibility of the timing for reporting the
topic-specific disclosures (XXX-4 and XXX-5 in the exposure draft) to allow for the finalization of
local statutory accounts.
Concerns that reporting of the topic-specific disclosures was achievable in the time frame normallyassociated with preparing sustainability reporting was also raised during stakeholder engagement
events.
GSSB response: It is acknowledged that the common existing practice of organizations is to prepare taxrelated reporting later than their sustainability reporting. It is considered that aligning the reporting required
under the topic-specific disclosure(s) (Disclosure 207-4 in the final Standard) may become feasible in time
but that it will involve a change in practice and so may be a challenge for reporting organizations in the nearterm.
As a consequence, a (compilation) requirement (clause 2.1 in the final Standard) has been added thatclarifies that if it is not possible to report country-by-country information based on the most recent audited
consolidated financial statements, or the financial information filed on public record, the organization mayreport data for the time period covered by the audited consolidated financial statements, or the financial
information filed on public record, immediately preceding the most recent ones.

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This may result in the time period of the information reported under the topic-specific disclosure (Disclosure207-4 in the final Standard) being different from the reporting period of an organization’s sustainability
reporting. To ensure that the relevant time period is clear for a reader of the information, an additional
requirement has been added that requires a reporting organization to report the time period covered by the
information reported (Disclosure 207-4-c in the final Standard).

Disclosure XXX-4 Entities and activities by tax jurisdictiona) Clarifying the term ‘tax jurisdiction’One respondent, along with an attendee at a stakeholder event, advised that the use of the term ‘tax
jurisdiction’ and the corresponding definition should be reconsidered as it could lead to incomplete
reporting. They suggested that appending ‘tax’ to jurisdiction could inadvertently lead to the
exclusion of relevant jurisdictions, by either giving the impression that jurisdictions that do not
require the payment of tax do not fall within the scope of this disclosure or that it is only necessary
to report on jurisdictions where an organization makes material tax payments.
In addition, a few respondents suggested that the definition did not make it sufficiently clear at which
jurisdictional level information has to be reported (i.e., at the country or federal level, or a more
local level).
GSSB response: The definition of ‘tax jurisdiction’ has been revised to clarify that for the purposes of thisStandard, a tax jurisdiction is at the country level (i.e., a country, or a territory with autonomous taxing
powers similar to a country). A note has also been added to the definition to clarify that where a tax
jurisdiction chooses not to impose corporate income tax, it still falls within the definition of tax jurisdiction
and, as such, needs to be reported under Disclosure 207-4.
b) Clarifying the term ‘entity’A few respondents suggested that the definition of ‘entity’ should include a reference to the‘permanent establishment of a business unit’, in order to ensure that the reporting organization also
accounts for profits attributed to a permanent establishment in a tax jurisdiction.
GSSB response: Introducing a tax-related definition for the term ‘entity’ would have implications for the use of
the word in other places in the GRI Standards. As a consequence, the definition of ‘entity’ has been deleted
from the glossary and the guidance has been expanded to specify that entities include permanentestablishments.
c) Reporting the names of resident entities
Some respondents suggested that the definition of principal entities could cause confusion, with anumber of possible interpretations. A few respondents pointed out that if the share of turnovercontributed by entities fluctuates, the list of principle entities might not be comparable year-on-year.
It was suggested that a list of all entities would instead be more informative without increasing costor effort associated with reporting.
GSSB Response: It is noted that Disclosure 102-45 in GRI 102: General Disclosures 2016, alreadyrequires a list of all entities included in the organization’s consolidated financial statements or equivalent
documents. The listing of all constituent entities resident in tax jurisdictions is also required by some otherexisting reporting requirements, for example OECD BEPS country-by -country reporting. Given this, therequirement to report the ‘principal entities’ (along with the requirement to report the number of entities in ajurisdiction) has been replaced with a requirement to report the names of the resident entities by jurisdiction(Disclosure 207-4-b-i in the final Standard). The definition of ‘principle entities’ has consequently been
deleted from the glossary.

Page 13 of 24d) Additional reporting on number of workers
Approximately half of the respondents suggested expanding Disclosure XXX-4 (part of Disclosure207-4 in the final Standard) to require reporting on the number of workers in addition toemployees. Respondents suggested that, as organizations might employ more workers indirectly
through contractors than direct employees, the number of workers is a more accurate indicator of
economic activity.
Some respondents also suggested that the definition of ‘worker’ be amended to list the explicit typesof arrangements it includes.
In addition, a few respondents suggested that organizations be required to report the number of
employees in full-time equivalents to ensure comparability.
GSSB response: It is acknowledged that there might be situations where reporting the number of workers ina tax jurisdiction could be a better indicator of an organization’s scale of activity than the number of
employees. However, this will not always be the case and requiring all organizations to report both
employees and workers is not considered essential. The guidance explains that an organization can report
the number of workers performing the organization’s activities, if this helps explain the organization’s scale ofactivity.
The guidance specifies that the reporting organization may use an appropriate calculation to determine
employee numbers, and correspondingly, the requirement has been expanded to include reporting on thebasis of calculation of the number. The guidance also highlights the importance of consistent reporting acrossjurisdictions and time periods.
The definition of ‘worker’ has not been revised as it is part of the existing GRI Standards Glossary and is notunique to tax reporting.

Disclosure XXX-5 Country-by-country reportinga) Calculating profit
A few respondents highlighted that it is unclear if profit/loss before tax is to be reported on thesame basis as revenues; a different basis (i.e., aggregation) could result in over-inflation of the figure
and reduce the meaningfulness of the information.
GSSB response: The guidance for profit/loss before tax has been revised – the word ‘sum’ has been replacedby ‘consolidated’ to clarify that profit/loss before tax can be calculated on a consolidated basis.
Note: this change has also been carried through to the guidance on tangible assets other than cash and cash
equivalents (Disclosure 207-4-vii in the final Standard).
b) Reconciling with consolidated financial statements
A few respondents endorsed the requirement for a reporting organization to report informationfrom the ‘audited financial statements or information filed on public record’, and suggested it
provides assurance to report readers that the information disclosed reflects an organization’s
position in their published financial statements. However, one respondent pointed out that thisclause introduces an additional expectation over and above existing non-public country-by-country
reporting, such as the OECD BEPS, which allows organizations to choose their preferred source ofdata. A few respondents also requested further clarity on the clause, including the set of accounts
that it refers to (i.e., group audited accounts or the local entity statutory accounts).

GSSB response: It is acknowledged that the requirement to reconcile the data reported for revenues
from third-party sales, profit/loss before tax, tangible assets other than cash and cash equivalents,

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and corporate income tax paid on a cash basis with the data stated in its audited consolidated
financial statements, or the financial information filed on public record (as per clause 2.2.1 in the
final Standard), introduces a new expectation not specified in OECD BEPS (which allows the use ofa range of data sources). However, the organization’s audited consolidated financial statements (orother financial information filed on public record) is an existing publicly available source of thisinformation. Given this, the requirement for reconciling or providing an explanation for thedifference is considered to increase confidence in, and understanding of, the financial information
being reported by the organization on a country-by-country basis.
The following revisions have been made to the clause (clause 1.4.2 in the exposure draft, clause
2.2.1 in the final Standard) to improve clarity:•

The term ‘audited financial statements’ has been replaced with ‘audited consolidated
financial statements’ to more clearly specify that the clause refers to the financial
statements of the group, and not the local statutory accounts;•

The words ‘use the data stated in’ have been replaced with ‘reconcile the data reported…
with’, to mitigate any misunderstanding that there is an expectation that the information for
individual tax jurisdictions is listed in the audited consolidated financial statements; and•Guidance has been added for this clause, which explains that the data is considered to bereconciled when the sum of this data for all tax jurisdictions equals the amount reported in
the organization’s audited consolidated financial statements or in the financial information
filed on public record.

c) Use the term ‘corporate income tax’
One respondent suggested replacing the term ‘corporate tax’ with ‘corporate income tax’
throughout the Standard to ensure corporate taxes other than income taxes are not included.

GSSB response: ‘Corporate tax’ has been replaced with the term ‘corporate income tax’ throughout
the Standard.
d) Reporting withholding tax separately from corporate income tax paid
A few respondents indicated different preferences for reporting withholding taxes. One respondentsuggested that withholding taxes should be reported separately from the corporate income tax paid
to allow for a clear distinction in types of tax paid in different jurisdictions. Two other respondentssuggested that this should be aligned with OECD BEPS, which requires withholding tax to be
included in corporate income tax paid (on a cash basis). Another respondent suggested that all taxes
paid to a tax jurisdiction should be reported for that jurisdiction, whether or not the entity which
has made the payment is tax resident in that jurisdiction.

GSSB response: The reporting requirement and guidance included in the exposure draft (Disclosure XXX-5d), specified that when reporting corporate income tax paid on a cash basis for a tax jurisdiction, theorganization can calculate the total actual corporate income tax paid by all resident entities in the tax
jurisdiction, including cash taxes paid by entities to the jurisdiction of residence and to all other jurisdictions.
This is aligned with guidance provided in OECD BEPS.

For some sectors, it can be particularly relevant to report the jurisdiction where the tax is paid, regardless of
where an entity is tax resident. To account for this, the guidance for corporate income tax paid on a cash
basis (Disclosure 207-4-b-viii in the final Standard) has been expanded to clarify that if taxes are incurred inPage 15 of 24

tax jurisdictions where an entity is not resident, the organization can report the amount of tax paid to theother tax jurisdictions separately and also identify the jurisdictions where the tax was paid.
e) Reporting the reasons for the difference between corporate income tax accrued on
profit/loss and the tax due if the statutory tax rate is applied
A few respondents suggested that preparing corporate tax reconciliations for all tax jurisdictions
could be a considerable burden for reporting organizations. One respondent suggested giving further
consideration to whether this disclosure appropriately balances the usefulness of the information forstakeholders, with compliance costs. Another respondent suggested either making this arecommendation or limiting the requirement to jurisdictions in which the profits of the organization
are considered material.
GSSB response: It is noted that there appears to be some confusion about whether a reporting organizationis required to report a quantitative corporate tax reconciliation or a narrative description of the reasons forthe difference between corporate income tax accrued on profit/loss and the tax due if the statutory tax rate
is applied to profit/loss before tax.
The Standard only requires a narrative explanation, which is considered to be a good balance between
information that is of key value to a variety of stakeholders and the effort and costs associated with reporting
the information.
To further clarify that the requirement is a narrative description, a number of small wording changes havebeen made to the guidance.
f) Value of reporting on significant tax incentives
Respondents were divided on the value of reporting on significant tax incentives (Disclosure XXX-5g in the exposure draft). Some respondents supported reporting on the use of tax incentives, whileothers expressed concern about the value and feasibility of this reporting requirement. Some
respondents made a range of suggestions about expanding or narrowing the scope of therequirement; others suggested that both the terms ‘tax incentive’ and ‘significant’ needed further
definition.
One respondent felt that a country-level tax reconciliation is already likely to include any tax
incentives that have an impact on the effective tax rate, making this additional requirement
unnecessary.
GSSB response: The requirement to report significant tax incentives has been deleted from the disclosure(Disclosure 207-4 in the final Standard). Where a tax incentive is significant, it will likely be reported as areason for the difference between corporate income tax accrued on profit/loss and the tax due if thestatutory tax rate is applied to profit/loss before tax. Correspondingly, the guidance for this requirement has
been incorporated into the guidance for reporting on the difference between corporate income tax accruedon profit/loss and the tax due if the statutory tax rate is applied to profit/loss before tax (Disclosure 207-4-bx in the final Standard).

Page 16 of 24

Annexes
1.Overview of questionnaire
Number

Question

Question 1

Are any of the management approach disclosures in GRI XXX: Tax andPayments to Governments not understandable and/or feasible? If so, why, and,
what, if any, wording revisions or guidance would you suggest?

Question 2.

With respect to reporting requirements in the management approach
disclosures in GRI XXX: Tax and Payments to Governments, are all of themcritical to describing the management approach on tax and payments togovernments. If not, which requirements are not critical?

Question 3.

Are any of the topic-specific disclosures in GRI XXX: Tax and Payments toGovernments not understandable and/or feasible? If so, why, and, what, if any,
wording revisions or guidance would you suggest?

Question 4A

Do you have any comments on the definitions included in the glossary of GRI
XXX: Tax and Payments to Governments (line numbers 588 - 625)?

Question 4B.

Are there any additional terms in the draft Standard that need to be defined?

Question 5.

Are there additional references, other than those listed in GRI XXX: Tax andPayments to Governments (line numbers 626 - 635), that could be useful inunderstanding and applying the Standard?

Question 6A.

Are there any disclosures in GRI XXX: Tax and Payments to Governments thatare not critical to understanding an organization’s tax practices?

Question 6B.

Are there any critical disclosures missing from GRI XXX: Tax and Payments toGovernments that are necessary to understanding an organization’s tax
practices?

Question 7.

If you are a reporting organization, do you believe the draft Standard as it ispresented in this form and/or the topic of tax and payments to governments,
would be material for your organization?

Question 8A.

If you represent an organization that is currently reporting publicly on tax andpayments to governments, how do the disclosures in GRI XXX: Tax andPayments to Governments compare to what you are currently reporting?

Question 8B

Is your organization subject to any existing public reporting requirements on tax
and payments to governments? If so, which one/s?

Question 9

Do you have any other comments or suggestions related to this draft Standard?

Page 17 of 24

2.Overview of respondents
The table below provides an overview of the public comment respondents.
Representation

Name

Country

RegionStakeholder
constituency4

Organizational
Organizational
Organizational
Organizational
Organizational
Organizational

Accountancy Europe
ACFO-ACAF
ActionAid InternationalÆquo Shareholder engagement services
AG Sustentable and its Community
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
American Federation of State, County and Municipal Employees (AFSCME)CtW Investment Group
Boston Common Asset Management
Decatur Capital Management, Inc.
Domini Impact Investments
First Affirmative Financial Network
Friends Fiduciary Corporation
Harrington Investments Inc.
Interfaith Center on Corporate Responsibility
International Brotherhood of Teamsters
JLens Investor Network
Maryknoll Fathers and Brothers Miller/Howard Investment, Inc.
Missionary Oblates JusticePeace and Integrity of Creation Office Natural Investments
The New York State Common Retirement Fund

Belgium
CanadaN/A
CanadaArgentina
United States ofAmerica

EuropeNorthern America
AfricaNorthern America
Latin America
Northern America

Other
Labor
Civil Society Organization
Investment Institution
Mediating Institution
Investment Institution

4 Stakeholder constituencies marked by * have been reclassified by the Standards Division following a review of the organization’s description.

Page 18 of 24

Organizational

Scherman Foundation Seventh Generation Interfaith Sisters of Charity of Saint Elizabeth
Sisters of St. Dominic of Caldwell
New Jersey Sisters of St. Francis of Philadelphia
Stewart Mott Foundation
Tri-State Coalition for Responsible Investment
UAW Retiree Medical Benefits Trust
Wallace Global Fund
Zevin Asset Management
Anglo American Plc

Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational

Australasian Centre for Corporate Responsability (ACCR)
Australian Council of Superannuation Investors (ACSI)
Australian Shareholders' Association
AustralianSuper
Barloworld
BASF SEBEPS Monitoring Group
Canadians for Tax Fairness
CCOO (Federación de Servicios)
CCOO FPCCOO INDUSTRIA
Centre for International Corporate Tax Accountability & Research (CICTAR)
Cheshire Pension Fund

Organizational

Church Commissioners for England

Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational
Organizational

CLP Holdings Limited
Combustech
CPA Australia
Danish Institute for Human Rights
Diakonia
Etica Sgr
Eumedion
European Network on Debt and Development (Eurodad)

United Kingdom ofGreat Britain andNorthern Ireland
Australia
Australia
Australia
Australia
South Africa
Germany
N/A
Canada
Spain
Spain
Spain
Australia
United Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
Hong Kong
BrazilAustralia
Denmark
SwedenItaly
Netherlands
Belgium

EuropeBusiness Enterprise

Oceania
Oceania
Oceania
Oceania
AfricaEuropeEuropeNorthern America
EuropeEuropeEuropeOceania
EuropeCivil Society Organization
Investment Institution
Investment Institution*
Investment Institution
Business EnterpriseBusiness Enterprise
Civil Society Organization
Civil Society Organization
Labor
Investment Institution*
Investment Institution*
Civil Society Organization
Investment Institution*

EuropeInvestment Institution

Asia
Latin America
Oceania
EuropeEuropeEuropeEuropeEuropeBusiness EnterpriseMediating Institution
Mediating Institution
Other
Civil Society Organization
Investment Institution
Investment Institution*
Civil Society Organization

Page 19 of 24

Organisational

EuropeanIssuers

Organizational

Financial Accountability and Corporate Transparency Coalition

Organizational

Financial Transparency Coalition

Organizational
Organizational
Organizational

FNV
Fondo de Pensiones de Empleados de Telefónica
Hermes EOS

Organizational
Personal
Organizational

IndustriALL Global Union
Professor Richard Eccleston, Mr Lachlan Johnson Associate, Professor Fred Gale, Dr
Hannah Gregory Murphy(Institute for the Study of Social Change, The University of Tasmania)
International Council on Mining and Metals

Organizational

International Transport Workers' Federation

Organizational
Organizational
Organizational

International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied
Workers' Associations (IUF)
Ircantec
Legal & General Investment Management

Organizational

LGPS Central Limited

Organizational

Lincolnshire Pension Fund

Organizational"Local Authority Pension Fund Forum (LAPFF) *this submission was also separately
endorsed by Cumbria LGPS"

Organizational
Organizational

LOGIBERIA TRANS S.A
LUCRF Super

15 European
countries
United States ofAmerica
United States ofAmerica
Netherlands
Spain
United Kingdom ofGreat Britain andNorthern Ireland
Switzerland
Australia

EuropeBusiness Enterprise*Northern America

Civil Society Organization

Northern America

Civil Society Organization

EuropeEuropeEuropeLabor
Investment Institution*
Investment Institution

EuropeOceania

Labor
Other

United Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
Switzerland

EuropeBusiness Enterprise

EuropeLabor

EuropeLabor

FranceUnited Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
Spain
Australia

EuropeEuropeInvestment Institution
Investment Institution

EuropeInvestment Institution

EuropeInvestment Institution*

EuropeInvestment Institution*

EuropeOceania

Business Enterprise
Investment Institution

Page 20 of 24

Organizational

Natural Resource Governance Institute

Organizational

Norges Bank Investment Management

Organizational

Organizational

NYC Comptroller on behalf of: New York City Employees’ Retirement System Teachers
Retirement System of the City of New York
Senator Sheldon Whitehouse, Congressman Lloyd Doggett, Senator Chris Van Hollen,
Congressman Mark Pocan"
Oxfam

Organizational
Organizational
Organizational
Personal

PBU - Pædagogernes Pension (Pension Fund of Early Childhood and Youth Educators)
PenSamPensions Caixa 2 Pension Fund
Elise J. Bean

Organizational
Organizational
Organizational

PFA
PKA
PricewaterhouseCoopers Network of Firms (PwC)

Organizational

Public Services International (PSI)

Organizational

Public Services International Research Unit (PSIRU) at the Centre for Research on Workand Employment (CREW) at the University of Greenwich, London

Organizational
Organizational
Organizational

Publish What You Pay Global Council
Publish What You Pay Norway
Rathbone Greenbank Investments

Organizational
Organizational
Organizational

Repsol II, Fondo de Pensiones
Rio Tinto
Schroders

Personal

United States ofAmerica
United Kingdom ofGreat Britain andNorthern Ireland
United States ofAmerica
United States ofAmerica
United States ofAmerica
Denmark
Denmark
Spain
United States ofAmerica
Denmark
Denmark
United Kingdom ofGreat Britain andNorthern Ireland
France, 163
countries w/ PSI
affiliates
United Kingdom ofGreat Britain andNorthern Ireland
ZambiaNorwayUnited Kingdom ofGreat Britain andNorthern Ireland
Spain
UK/Australia
United Kingdom ofGreat Britain andNorthern Ireland

Northern America

Civil Society Organization

EuropeInvestment Institution

Northern America

Investment Institution

Northern America

Other

Northern America

Civil Society Organization

EuropeEuropeEuropeNorthern America

Investment Institution
Investment Institution
Investment Institution*
Civil Society Organization

EuropeEuropeEuropeInvestment Institution
Investment Institution
Other

EuropeLabor*

EuropeOther

AfricaEuropeEuropeCivil Society Organization
Civil Society Organization
Investment Institution

EuropeOceania
EuropeInvestment Institution*
Business Enterprise
Investment Institution*

Page 21 of 24

Organizational

Service Employees International Union

Northern America

Labor

Shareholder Association for Research and Education
South African Democratic Teachers' Union (SADTU)

United States ofAmerica
CanadaSouth Africa

Organizational
Organizational

Northern America
AfricaInvestment Institution*
Labor

on behalf of the
GRI Stakeholder
Council
Personal

Stakeholder Council Members

N/A

Other5Germany / Austria

Organizational
Organizational

Prof. Dr. Karina Sopp, Josef Baumüller
(Technische Universität Bergakademie Freiberg, Vienna University of Economics andBusiness)
The B TeamThe Independent Commission for the Reform of International Corporate Taxation

Africa Asia Europe
Latin America
Northern America"
EuropeOrganizational
Organizational

TWU Superannuation Fund
Tyne and Wear Pension Fund

Organizational
Organizational"UCA Funds Management (to be known as U Ethical from mid-April, 2019)"
UNISON Staff Pension Scheme

Organizational

Unite Pension Scheme

Organizational
Organizational
Personal
Personal

United Voice
Vision Super
Troy Carter
Eva Joly (MEP)

United Kingdom ofGreat Britain andNorthern Ireland
Australia
United Kingdom ofGreat Britain andNorthern Ireland
Australia
United Kingdom ofGreat Britain andNorthern Ireland
United Kingdom ofGreat Britain andNorthern Ireland
Australia
Australia
Australia
FranceMediating Institution

EuropeBusiness Enterprise
Civil Society Organization

Oceania
EuropeInvestment Institution*
Investment Institution

Oceania
EuropeInvestment Institution
Investment Institution*

EuropeInvestment Institution*

Oceania
Oceania
Oceania
EuropeLabor
Investment Institution
Other
Other

5 The Stakeholder Council Members represent all stakeholder constituencies. For the purposes of this report they have been classified as ‘other’.

Page 22 of 24

3. Public comment submissions byrepresentation, stakeholder constituency, andregionBreakdown of the submissions by representation, constituency group and region:

Public comment submissions
by representation
Personal
7%

Public comment submissions, byconstituency
Civil Society
Organization
18%

Investment
Institution
43%

Business
Enterprise
11%
Other
11%
Organizational
93%

MediatingInstitution
5%

Labor
12%

Public comment submission, by
regionOceania17%

Africa5%

Asia
1%

Northern
America16%

Latin
America2%
Global2%

Europe57%

Page 23 of 24

4. List of stakeholder workshops and webinars
Location

Date

Number ofparticipants

Virtual webinars

22 & 23 January 201993

Virtual webinars (investors
only)628 January 201934

Brussels

31 January 201951

London and Boston7

7 February 201917

Amsterdam

21 February 201912

Phoenix8

27 February 201910

Johannesburg

5 March 201929

13 February 2019

Total

246

6 Includes two webinars hosted by GRI and one by a third party.
7 This event was hosted simultaneously across the two locations using conferencing facilities.
8 This was a drop-in engagement opportunity held as part of a third-party conference and was notdelivered in the form of a workshop.
Page 24 of 24