GRI 207: Tax

The Global Reporting Initiative (GRI) is an independent international organization headquartered in Amsterdam, Netherlands. Its primary mission is to assist companies and organizations in taking responsibility for their impacts on sustainability. GRI achieves this by providing globally recognized standards that enable these organizations to communicate their impacts effectively. One such standard is the tax-related framework, GRI 207: Tax (2019).

GRI 207 is a guideline aimed at encouraging organizations to voluntarily disclose their tax information, including revenue, taxes paid, and business activities in each country. Currently, neither the International Financial Reporting Standards (IFRS) nor the Organisation for Economic Co-operation and Development (OECD) mandates the disclosure of such country-specific information. GRI believes that public disclosure of country-by-country tax information can help organizations:

• Strengthen tax compliance.
• Avoid aggressive tax planning.
• Maintain trust and credibility in the tax system.
• Enable stakeholders to make informed judgments about their tax practices.
• Support governments and the public in shaping tax policies that promote societal development.

The guidelines are available in both English and Chinese. You can visit the GRI website to download them. Let’s dive into the specific rules under GRI 207.