Disclosure focus
This disclosure asks an organisation to explain its overall approach to tax: how it manages tax matters, the principles or policies it follows, and how that approach is embedded in decision-making. The emphasis is on the organisation’s tax governance and operating approach, rather than on giving a detailed tax calculation or a list of every tax paid.
In practice, the focus is usually on whether the approach applies across the whole organisation and its relevant entities, not just at a few headline sites or flagship operations. A useful explanation will show how tax is handled consistently, who is responsible, and how the organisation makes sure its approach is applied in day-to-day operations and across different jurisdictions where it operates.
This LRA educational guidance supports disclosure preparation. For the exact requirements, always refer to the official GRI source.
Before you start
A quick mental checklist before you prepare this disclosure — tick each as you settle it.
Preparation
Key datapoints to prepare
＋ Show GRI 207-1 sub-elements (LRA working checklist)
Explain how the tax approach supports the organisation’s wider business plan and sustainability goals.
Set out how the organisation handles compliance with tax rules and related regulations.
Describe the organisation’s overall approach to tax in practical terms.
State whether the organisation has a formal tax strategy.
Say how often the tax strategy is checked or updated.
Identify which board-level group or senior executive formally reviews and signs off the tax strategy.
Provide a public link to the strategy, if one is available.
How to prepare it
1Start by deciding whether the organisation has a tax policy or strategy, and gather the source material that shows it exists. If it is published, keep the live link or document reference ready for the disclosure file.
2Identify who in the organisation formally signs off on that tax approach. Record the relevant board-level group or senior executive role, and note how often that review happens.
3Write a plain summary of how the organisation handles tax in practice. Keep it focused on the approach itself, and separate it from broader commentary or unrelated tax topics.
4Set out how the organisation manages compliance with tax rules and filing obligations. Use evidence from internal policies, controls, or process notes that support the description you give.
5Explain how the tax approach connects with the organisation’s wider business direction and its sustainability priorities. Make sure the link is specific enough to show how the two are aligned.
6Before finalising, check every item against the source documents and confirm nothing material is missing or misstated. If you have left anything out or changed wording from the source, document that clearly and correct it where needed.
Request the data
Request the tax policy pack from Finance / Tax
Translate the disclosure into an internal business question — then adapt it to your organisation's own language.
How does the organisation set, approve, review and explain its tax approach, and how is that approach connected to the wider business plan and sustainability priorities?
Use your organisation’s own labels first, then map them to the reporting wording. For example, if you call this a tax policy, tax principles note, or tax governance paper internally, use that term in the request and in the evidence pack. Keep the ask in business language, not framework language, and check the source material before sign-off.
Weak request
Please provide the GRI 207-1 tax strategy evidence and confirm governance review, compliance approach, and linkage to sustainable development.
Why it fails: This uses framework wording that many internal owners will not use day to day, so it is easy to misunderstand or answer only partially. It also does not point the owner to the actual document types, approval trail, review timing, or where the evidence sits.
Better request
Please send the current tax policy or equivalent note for [period], the approval record showing who signed it off, how often it is refreshed, whether it is public, and a short explanation of how it supports the wider business plan and sustainability priorities. If your team uses different labels, use those and add a quick mapping note.
Industry examples
Draft your disclosure
Notes that turn data into a disclosure
LRA training templates — adapt them to your organisation, and check the official source before sign-off.
Method note
Describe the basis used to prepare the disclosure, including how the organisation defines its tax approach, what it treats as its tax strategy, who is counted as the approving decision-maker, and how it determines the review frequency.
Context note
Explain what the figures and descriptions show about how tax is managed in practice, including whether there is a formal strategy, how oversight is organised, how often it is refreshed, and how tax is aligned with the wider business and sustainability agenda.
Fluctuation statement
If the approach, approval route, review timing, or public link has changed since the prior period, note the reason for the change and whether it reflects a shift in governance, compliance focus, or business strategy.
Content index entry
GRI 207-1 Approach to tax — [location / page] / [notes]
Download Centre
Preparation tools & forms
Professional preparation tools for GRI 207-1 — free with an LRA Community membership. Register once (it's free) and every download unlocks, together with the Disclosure Library, templates and the LRA AI-assistant.
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Assurance readiness
For each claim, check the evidence
Evidence pack to prepare
Common reporting gaps
The information is presented without a date or as-at point.The scope or boundary of the statement is left undefined.Key terms are used inconsistently across the report.Material changes since the previous period are not disclosed.Assertions are made without supporting detail or a source record.Boilerplate is used that does not actually answer what is asked.
Common gaps
Mistakes to avoid when collecting the data
Asked the tax team only
The request goes to tax specialists alone, so the answer misses how finance, legal, governance and strategy owners actually describe the organisation’s tax approach.
Used framework language in the ask
The data call is written in reporting jargon, which makes internal owners search for the wrong documents instead of answering in the organisation’s own terms.
No clear boundary for what counts
Teams collect material from some entities or functions but not others because nobody defined which parts of the group, business lines or jurisdictions belong in scope.
Mixed different reporting periods
One source is pulled from the current year while another reflects a different review cycle, so the final pack combines timings that do not match.
Switched counting bases mid-stream
Some inputs are captured as yes/no answers while others are gathered as narrative or dated records, and the team later treats them as if they were the same kind of evidence.
Lost the original source labels
When files are copied into a working sheet, the team drops the document names, version marks or owner tags that show where each fact came from.
Merged separate populations too early
Information about the board, a committee and an executive reviewer is blended into one line, even though each group should be tracked separately for the draft.
Collected evidence without metadata
The pack contains statements but not the supporting dates, authors, approval references or links needed to show what each item was based on.
No sign-off trail before drafting
The team starts writing the disclosure before anyone has confirmed the source pack, so there is no record of who checked the facts and when.
Where judgement is often needed
What counts as the group’s tax policy after a deal closes
If a purchase or sale changes the businesses in scope, explain whether the write-up covers the new group as at the reporting date or only the businesses that were already in place for the full period, and note any cut-off used.
When local rules use different labels for the same tax topic
Where countries use different legal terms or filing concepts, describe the common business meaning you have used so readers can see how the group’s tax approach is applied across jurisdictions.
How to treat joint ventures, associates, and other partly controlled interests
State whether these interests are included, excluded, or described separately in the tax approach narrative, and explain the basis for that choice if the treatment is not the same everywhere.
Whether the policy description is based on policy in force now or during the year
Make clear if the account reflects the current tax policy, the policy that operated during the reporting period, or both, and explain any timing difference between approval, update, and publication.
Using estimates where the underlying record is incomplete
If some parts of the description rely on judgement or proxy information rather than direct records, say where estimates were used, why they were needed, and how they were checked.
How much detail to give when the public version could expose sensitive information
If the full internal wording cannot be shared, provide a higher-level summary that still explains the approach, and say that more detailed material is withheld for confidentiality reasons.
Choosing the level of rounding or grouping in the narrative
If figures, dates, or review intervals are rounded or grouped for readability, state the convention used and keep it consistent so the reader can compare items without confusion.
Deciding which governance role to name when approval sits with more than one person or forum
If sign-off is shared between a board-level group and an executive role, identify the body or role that formally approves the tax policy and explain any split in oversight or review.
Explaining the link to wider business and sustainability plans when the connection is indirect
Where the tax approach supports the business model or wider sustainability aims only through several steps, describe the chain plainly and avoid overstating the strength of the link.
Examples
Illustrative examples
Synthetic, written by LRA — not from a company report, not text from any standard.
Illustrative (synthetic) example — Consumer goods manufacturing
*Synthetic illustration only.* We keep a written tax policy that sets out how we manage tax risk, meet filing duties and align tax decisions with our wider business plan and sustainability priorities. The board’s audit and risk committee signs off the policy, and we refresh it once a year; the policy is available on our website at a public link. Our compliance process covers registration, returns, payments and controls across the group, with oversight from the finance director and regular reporting to the board.
This example shows how a reporter can describe its tax approach in plain language, state whether a formal policy exists, identify where it is published, and explain who approves it and how often it is reviewed. It also links tax management to business direction and sustainability goals, while summarising the compliance process without using the standard’s wording.
Illustrative (synthetic) example — Transport and logistics
*Synthetic illustration only.* Our group uses a documented tax framework to guide decisions on tax planning, risk, and day-to-day compliance across the countries where we operate. The group chief financial officer approves the framework after review by the board’s finance committee, and we revisit it every two years; a public version is posted on our corporate website. We connect this approach to our growth plan and responsible business commitments by aiming for predictable tax outcomes, timely filings, and controls that support long-term value creation.
This example illustrates a different sector using a formal tax framework, naming the executive and board-level reviewers, and giving a review cycle plus a public web location. It also explains how tax management supports the business model and sustainable development aims, while describing compliance in practical terms.
Company reports
How companies report GRI 207-1
Real reports where this topic is disclosed. These are report practice, not exact disclosure templates to copy.
Endesa, S.A.
Electric Utilities / IPP / Energy Traders · Spain · 2025
Endesa, S.A.'s 2025 Consolidated Annual Report includes coverage of general sustainability information and company context on pages 5 and 149, with detailed discussion of material impacts, risks, and opportunities related to consumers and end users on page 153. The report also addresses corporate governance and tax policy as part of its sustainability disclosures on page 362, and references its own methodology aligned with EU Regulation 2020/852 on page 380. However, some narrative elements, such as detailed methodology explanations for certain items, are missing or unclear, with no quotable evidence found for narrative item (a-iv).
E.SUN Financial Holding Company, Ltd.
Banks / Diverse Financials / Insurance · Taiwan · 2024
E.SUN Financial Holding Company, Ltd.'s 2024 Sustainability Report covers several relevant areas, including a focus on a diverse, inclusive, and friendly workplace as part of talent attraction and retention (p.167), and detailed information on tax policy, governance, control, and risk management aligned with GRI 207 standards (p.164). The report also describes the Board of Directors’ involvement in sustainable development strategy execution (p.41) and outlines its approach to identifying and addressing data security risks (p.189). However, some narrative items lack clear or direct evidence in the report, as indicated by the absence of quotable content for certain disclosure elements.
Canacol Energy Ltd
Oil and Gas · Canada · 2024
Canacol Energy Ltd’s 2024 ESG Integrated Report includes coverage of its tax compliance and fiscal approach, highlighting a commitment to accountability and transparency as noted on page 54. The report also outlines the company’s sustainability strategy aimed at strengthening competitiveness and quality (p.16), and references additional climate-related disclosures such as the 2024 Climate Change Management Report and CDP Climate Change Questionnaire (p.86). However, there is no clear or quotable evidence found regarding some specific narrative items (a-iii and a-iv), and certain details remain unclear or missing from the report.
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Scenarios to work through
A group has a written tax policy, but it sits only with the finance team and has never been taken to the board. The policy was last updated two years ago after a change in the group structure.
QCan you describe the organisation’s tax approach if you cannot show who formally signs off the policy and how often it is revisited?
Reveal model answer →Hide answer ↑Not yet. I should explain the policy in plain terms, identify the board or a named senior executive that gives formal approval, and state the review cycle. If the policy is public, I should also include the link; if it is not public, I should not invent one.
Why this matters · The disclosure needs a clear picture of the policy itself, who approves it, and how regularly it is checked.
A preparer finds a tax policy on the company website, but the document is a general ethics statement with one short paragraph on taxes. The tax team also has a separate internal memo that sets out the real decision rules.
QWhich document should be used to explain the tax approach, and what should be done if the public document is only part of the story?
Reveal model answer →Hide answer ↑I should describe the actual tax approach using the substance of the internal rules and then point to the public document only if it genuinely reflects that approach. If the public page is incomplete, I should not present it as the full strategy; instead, I should explain the gap and avoid overstating what is available externally.
Why this matters · Use the source that truly reflects how tax is managed, and do not treat a partial public statement as the whole picture.
The tax policy says the audit committee reviews it every year, but in practice the committee has not seen it for 18 months because the agenda was crowded with other matters. Management still wants to report the annual cycle.
QShould the reported review frequency follow the written policy or the actual governance practice?
Reveal model answer →Hide answer ↑It should follow what really happens, not what the policy says in theory. If the committee has not reviewed it for 18 months, the report should reflect that timing and, if needed, explain the reason for the delay rather than repeating the planned annual cycle.
Why this matters · Report the real review pattern, not the intended one.
A multinational group says its tax approach supports growth, but the draft narrative only mentions filing returns on time and paying local taxes. It does not explain how tax decisions connect to expansion plans or wider sustainability goals.
QWhat extra explanation is needed to show the link between tax management, the business plan, and the organisation’s wider development aims?
Reveal model answer →Hide answer ↑I should add a short explanation of how tax choices support the business model and the organisation’s longer-term development priorities, such as where it invests, how it funds growth, or how it manages risk in a way that fits those aims. A statement about compliance alone is not enough to show that connection.
Why this matters · The narrative should connect tax management to the business direction and wider development strategy, not just to filing and payment tasks.
Framework references
Related framework references
How this disclosure maps across the major reporting frameworks.
Primary
Related & explore
FAQ
Questions this page answers
For GRI 207-1, what should I have ready before I start drafting the tax disclosure page?+−
The page says to prepare a tax approach summary, confirm whether a tax strategy exists, gather the public strategy link, identify the strategy approver, note the review cycle, describe the compliance approach, and capture how the strategy aligns with the business. Use those items as your starting checklist before drafting.
How do I use the step-by-step 'how to prepare' section for GRI 207-1 in practice?+−
Use it as a working sequence for collecting the core inputs, checking what evidence exists, and turning that into a draft disclosure. The page is designed to help you move from raw information to a report-ready narrative.
Who should own the GRI 207-1 tax disclosure data in my organisation?+−
The page points you to the kinds of people who may hold the inputs, including a sustainability/ESG manager, HR or another data owner, and an assurance reviewer. In practice, assign ownership for the strategy, approval, review cycle, and evidence so the disclosure can be assembled consistently.
What evidence should I collect for GRI 207-1 so the disclosure is assurance-ready?+−
The page includes an evidence pack with five items and also sets out six assurance claims to verify, each with a claim, risk, and evidence angle. Use those materials to build a file that shows where each reported point came from and who can support it.
What are the six assurance claims on the GRI 207-1 page, and how do I use them?+−
The page says there are six claims to verify, each framed around a claim, risk, and evidence. Use them as a review checklist to test whether the draft disclosure is supported and whether anything is missing before assurance.
What are the most common mistakes people make when drafting GRI 207-1 tax disclosures?+−
The page lists common reporting gaps and mistakes to watch for. Use that section as a pre-submission check so you can spot missing inputs, weak evidence, or inconsistencies before the draft is finalised.
How do I turn the GRI 207-1 page into a draft disclosure quickly?+−
The page gives you draft-output support, including visualisation ideas, narrative starters, and a GRI content-index line. That means you can use the page to move from collected data to a first draft without starting from a blank page.
How should I use the synthetic example disclosure on the GRI 207-1 page?+−
Treat it as a model for structure and level of detail, not as a real company example. The page says the example is synthetic and includes a quantitative table, so you can use it to see how the disclosure might read once your own data is inserted.
Can I reuse my GRI 207-1 tax data for ESRS G1 Business Conduct reporting?+−
The page notes ESRS G1 (Business Conduct) as the closest correspondence, so the data may be reusable across both. It does not say the requirements are identical, so you should still check the other framework separately.
Where do I find the workbook and printable card for GRI 207-1 preparation?+−
The Download Centre includes a Prep & Assurance workbook in .xlsx format and a printable Library Card in .pdf format. Use the workbook to organise the inputs and the card as a quick reference while drafting or reviewing.
More questions this page can help with
GRI 207-1 tax disclosure checklist for sustainability managerGRI 207-1 what data points do I need for the tax approach summaryGRI 207-1 who should approve the tax strategy disclosureGRI 207-1 evidence pack for assurance reviewGRI 207-1 common reporting gaps and mistakesGRI 207-1 workbook download and printable library cardGRI 207-1 draft narrative starters and content index lineGRI 207-1 synthetic example disclosure tableGRI 207-1 how to set the review cycle for tax strategy reportingGRI 207-1 public strategy link and compliance approachGRI 207-1 closest ESRS G1 business conduct data reuseGRI 207-1 assurance claims claim risk evidence
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