Responsible Tax Transparency in Multinational Value Networks

Daniel Fraser

Responsible Tax Transparency in Multinational Value Networks

Author(s)	Dr. Daniel Fraser
Country	United States
Abstract	Multinational enterprises distribute production, intellectual property, financing, procurement, services, employment, and market activities across increasingly complex international value networks. This organizational dispersion makes responsible tax transparency more demanding than disclosure of a consolidated effective tax rate or a single aggregate tax-payment figure. Stakeholders seeking to understand multinational tax behavior require information that connects profits and tax outcomes with the jurisdictions in which employees, assets, revenues, business functions, and economically substantive activities are located. This study develops a multidimensional framework for evaluating responsible tax transparency across multinational value networks. Because authenticated corporate tax records were not supplied, the quantitative component is explicitly structured as a simulation-based methodological evaluation. A synthetic environment comprising 80 multinational network profiles is assessed across four reporting-maturity conditions: fragmented entity reporting, consolidated tax reporting, jurisdiction-level transparency, and integrated value-network transparency. A Responsible Tax Transparency Index is proposed using five dimensions: tax-governance disclosure, jurisdictional reporting, economic-substance alignment, intra-group transaction visibility, and reconciliation quality. Simulated analysis indicates an increase in overall transparency from 44 points under fragmented entity reporting to 91 points under an integrated value-network approach. The findings emphasize that transparency should not be interpreted as evidence that a multinational has paid an objectively predetermined “correct” amount of tax. Rather, responsible transparency requires sufficiently complete, comparable, and reconciled information to enable stakeholders and tax authorities to understand how economic activity, profits, intra-group arrangements, and tax contributions are distributed. The proposed framework contributes to research on responsible taxation, country-by-country reporting, corporate accountability, and multinational governance while preserving the distinction between legitimate tax planning, tax-risk indicators, and determinations of non-compliance.
Keywords	responsible tax, tax transparency, multinational enterprises, country-by-country reporting, value networks, tax governance, economic substance, corporate accountability
Field	Engineering
Published In	Volume 6, Issue 4, July-August 2025
Published On	2025-07-14

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American Journal of Advanced Multidisciplinary Innovation and Research

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Responsible Tax Transparency in Multinational Value Networks

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