The Accountant Publishes Serena Lee, Thomas Hill Article on Impacts of ESG on Tax
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“ESG and tax: a case of paying for your virtues,” an article by Akin tax partner Serena Lee and trainee solicitor Thomas Hill, has been published by The Accountant.
The authors explore the extent to which increasing pressure for businesses to focus on environmental, social and governance (ESG) considerations affects, and might affect in the future, decision making in respect of tax planning.
As they write, “While tax strategies need to be frequently reviewed in order to reflect changing international tax law and to minimise risk, tax planners are facing increasing pressure to integrate ESG considerations into their structures as part of a broader ESG strategy.”
In addition to international law preventing certain tax behaviours, the court of public opinion’s input has “resulted in investors becoming much more wary of offshore jurisdictions like the Cayman Islands, as well as structures that could expose them to reputational risk.”
The authors consider that, while decisions based on social and environmental factors are perfused with tax considerations, the voluntary embrace of meaningful ESG tax measures requires businesses to wilfully increase their tax bill in favour of promoting ESG values.
To read the full article, please click here