A new wave of company tax disclosures is expected in 2026 due to increased transparency requirements from US accounting standards, the European Union, and Australia. The disclosures may create challenges because the data is likely to be messy, difficult to compare, and vulnerable to misinterpretation.
The new reporting requirements are connected to broader tax policy debates around corporate transparency. They are intended to provide more information about company tax positions, but the resulting data may not always support strong conclusions.
A key risk is that disclosure data can present a picture that differs from reality. Policymakers and analysts may use the information to discuss tax policy, but they need to understand the limits of the data before drawing conclusions.
The main issues highlighted are:
- New company tax disclosures are coming from US accounting standards, the European Union, and Australia.
- The data may be poorly suited for strong conclusions.
- The information can be misinterpreted if users do not understand its weaknesses.
- Tax transparency data should be used carefully in policy debates.
- Data sources can sometimes present a distorted or incomplete picture of reality.
A Tax Foundation webinar on the topic is scheduled for July 29, 2026, from 9 AM to 10 AM EDT. The discussion is set to cover the history of these disclosures, their connection to tax policy, and the weaknesses of the data.
Source article: taxfoundation.org
