Academic Research Informing Practitioners: GRI 207 Tax Disclosures

The Global Reporting Initiative (GRI) 207 Tax standard, effective from January 1, 2021, mandates multinational enterprises (MNEs) to disclose tax payments by country. It is pivotal for stakeholders involved in ESG reporting due to its transparency in tax governance, including strategies, risk management, and country-specific tax payments. GRI 207 aligns with OECD's global tax reform and responds to stakeholder concerns over corporate tax practices. This paper outlines key research questions to explore the standard’s impact on tax transparency, ESG credibility, and firm performance.