1. 9 th October 2014 Perspective from the Danish Council for Corporate Responsibility on Tax and Transparency By Lise Kingo, Chair

2. Agenda 1. A welcomed conversation 2. The role of the Danish Council for Corporate Responsibility 3. Tax on the agenda: What are the issues? 4. The business perspective: A difficult grey zone 5. Current international guidelines 6. Additional guidance aiming for clarity 09-10-2014The Tax Dialogue 2

3. 1. A welcomed conversation Tax governance Corporate tax morality Fair tax Global tax footprint Total tax contribution Tax governance Tax charter Tax code of ethics & conducts Tax transparency 09-10-2014The Tax Dialogue 3

4. 2. Danish Council for Corporate Responsibility advises the government on issues that contribute to supporting CSR implementation by companies and authorities initiates activities to promote CSR work by companies and authorities 09-10-2014The Tax Dialogue 4

5. Social responsibility A company demonstrates social responsibility and creates value for both business and society by addressing social, environmental and economic challenges in dialogue with its stakeholders and in accordance with internationally recognised principles for CSR. 09-10-2014The Tax Dialogue 5

6. 3. What are the issues? 09-10-2014The Tax Dialogue 6

7. 4. The business perspective It is legal – is it also moral? International operations vs national regulation Competitive and responsible Transparent, how? Value creation – much more than corporate tax 09-10-2014The Tax Dialogue 7

8. Tax policy – an example We will pursue a competitive tax level in a responsible way by: Paying taxes due in all jurisdictions where we have a business presence Only participate in projects supported by a clear business rationale Continue to communicate and share our strategy with stakeholders Novo Nordisk tax policy 09-10-2014The Tax Dialogue 8

9. Code of Conduct – an example 09-10-2014The Tax Dialogue 9

10. 5. Current international guidelines OECD Guidelines for Multinational Enterprises (2011): Comply with both the letter and the spirit of the laws and regulations in all countries the company operates in Provide information necessary for correct determination of taxes EU CSR strategy 2011-14: Three principles for good tax governance: transparency, exchange of information and loyal tax competition EU Directive on Non-financial information (2014/2017): Country-by-country reporting in forestry and extractive industry Nyt EU regnskabsdirektiv: 09-10-2014The Tax Dialogue 10

11. 6. Additional guidance aiming for clarity Three perspectives on tax…. Financial management – cost and compliance CSR – transparency and fairness Corporate governance – a responsibility of the board … require a collaborative approach Tax professionals Civil society organisations Danish Committee on Corporate Governance Danish Council for Corporate Responsibility Expected outcome Brief on issues and questions => principles on responsible tax 09-10-2014The Tax Dialogue 11

12. Principles on responsible tax Principles on responsible tax – could be about Accountability: ensuring that tax is paid in the country in which the economic benefits of the business arise and that any tax planning is secondary to the commercial purposes of a transaction Transparency: sharing dilemmas and risks more effectively; disclosure on taxation paid and associated liabilities Consistency: applying same principles and governance as the rest of the business, taking a global approach to taxation practices 09-10-2014The Tax Dialogue 12

13. Thank you For further information, please contact the secretariat: rfs@erst.dk rfs@erst.dk