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Tax and corporate governance: joining the dots

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From 2019, large private companies will be required to explain their approach to corporate governance in their annual directors’ report. Listed companies already have similar requirements under the Cadbury Code. Tax is increasingly seen as a corporate governance matter, with HMRC acting as a quasi-regulator. Groups, whether private or listed, need to develop a coherent approach to manage the numerous tax governance-related measures. A corporate governance code, like the new Wates Principles, can help provide a meaningful framework for dealing with tax risk.

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