MTN South Africa said that accounting firm PwC has released its findings from a review of the voluntary tax reporting for the financial year ending 31 December 2018, of the top 100 companies listed on the Johannesburg Stock Exchange (JSE). It summarises trends in tax transparency. MTN was identified by an independent judging panel as the best performing company with a primary listing in South Africa and a multinational presence.
The judges commented that as with previous disclosures, MTN produced a comprehensive set of tax disclosures in 2018 that highlight the operator’s commitment to tax transparency. MTN said it addressed the majority of the disclosure criteria related to ‘Tax Strategy and Risk Management, providing a comprehensive overview of principles governing approaches to tax and the link to companywide risk management.
PwC said MTN provides a good breakdown of its ‘Total Tax Contribution and Wider Impact’ per jurisdiction. The judges consider that the effectiveness of MTN’s tax transparency reporting stems from the integration of its tax disclosures with other company-related disclosures.
PwC named Vodacom as the best performing company with a primary listing in South Africa that have a predominantly national presence
The judges were impressed with Vodacom’s comprehensive set of tax disclosures in 2018 and consider that its ‘Public Finances report’ illustrates key tax facts and findings by using charts and figures that are easy to understand. Vodacom disclosed almost all the criteria in the tax transparency maturity framework to a certain extent.
Vodacom’s detailed breakdown of its direct tax borne, indirect taxes collected on behalf of the government and other non-tax payments, and comprehensive indicators for revenue, profit/loss before tax, EBITDA, number of employees and country-by-country capex, stood out. There was a good articulation of its tax strategy and principles, lobbying and public consultations on industry tax. One judge said that what tipped the scale in Vodacom’s favour was the integration of the tax disclosures in the company’s Integrated Report.