Building Public Trust Awards

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There has never been a greater need for businesses to build trust around their tax affairs than now.

Much has been written about tax transparency recently and there’s no sign that the debate will subside. 

The purpose of the awards is to promote transparency and better disclosure in tax reporting by listed entities with the purpose of building public trust, and to recognise the leading companies in this regard.  These awards have been sponsored by PwC in the UK for the past ten years and have been instrumental in increasing the standards of corporate tax reporting in that country.  

We see the South African edition of these awards, which have been running for the past four years, as having the potential to make a similar contribution to improving the standards of tax reporting by business, with the benefits that flow from this.

Judges

Anna-Retha Smit

Anna-Retha is a senior lecturer at the University of Pretoria and lectures taxation on post-graduate level.

Marchantia Pollock

Marchantia is a senior lecturer in the Department of Accounting at the University of Pretoria.

 

Lindie Engelbrecht

Lindie is SAICA Executive Director: Members and Global alliances at SAICA. She is also a member of the King Committee on Corporate Governance.

Mervyn King

Mervyn King is a Senior Counsel and former Judge of the Supreme Court of South Africa. He is Chairman of the King Committee on Corporate Governance in South Africa, which produced King I, II and III.

Sue Ludolph

Sue Ludolph represents South Africa at the World Standard-Setters of the International Accounting Standards Board (IASB) and at the International Forum of Standard-Setters. Sue is also the former Project Director for Financial Reporting at SAICA.

 

Awards process

The companies that were assessed were the top 100 JSE listed companies by market capitalisation as at 31 December 2016. Entry for the awards is automatic and all companies were assessed in compiling the shortlists for consideration by the judging panel.

A tax transparency framework has been developed and the performance of each company was quantitatively assessed against the framework. The framework consists of mandatory tax disclosure requirements (IFRS and King Code), voluntary tax disclosure requirements based on mandatory requirements applicable in other countries and voluntary disclosure suggestions and best practice.

The data used to evaluate the extent of tax reporting against the framework was sourced from Annual Reports, Corporate Social Responsibility Reports, Annual Financial Statements and Integrated Reports for the top 100 JSE listed companies from the McGregor BFA Database and companies’ websites for the 2016 financial period as well as other relevant reports from companies’ websites related to the company’s tax approach.

Each of the company’s reports was evaluated independently by two members of the research team at the University of Pretoria. The two members of the research team compared their separate evaluations and then mutually agreed on the final evaluation of a specific company. In addition, the coding for the top ten companies by market capitalisation was reviewed by an independent team of reviewers. Where any material inconsistencies in the coding were identified, these were addressed and corrected in the final results. PwC was not involved in the scoring and was not able to influence it in any way.

A five-point Likert scale was used for most criteria in order to include an element of qualitative assessment. For each of the items on the tax transparency framework, a company was allocated points if it addressed the specific item as part of its reporting. For those items for which a Likert scale was used, the points allocated ranged from one to five depending on the assessment of the quality of the reporting relating thereto.

 

 

 


Award winners 

 

Category: Multinational companies

Winner:   AngloGold Ashanti Ltd

Highly commended:  MTN Group 

Category: Domestic companies

Winner: Vodacom Group 

Highly commended:  Harmony Gold Mining Company

 


Contact us

Paul De Chalain
Tax Leader (Africa)
Tel: +27 (0)11 797 4260
Email

Kyle Mandy
Partner
Tel: +27 (0)11 797 4977
Email

Sonja Nel
Associate Director
Tel: +27 (0)11 797 4207
Email

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