Do you have a tax policy in your business? The corporate tax system is becoming more intertwined with employment. And likely to increase. The Organisation for Economic Co-operation and Development (OECD) estimates that multinationals' annual losses to tax avoidance stand at £68-£164bn approximately. So it has come up with proposals to fix it. That is an organisation's tax should be paid where there is economic activity. And one way to identify the economic activity is where the key people are.

Therefore the location of a workforce could/would have a more significant influence on a company's tax bill. This type of measure would make it trickier for organisations to benefit from being based in low-tax countries. Or tax havens where they do little business. The European Commission has also proposed a system where multinationals' tax bills would be divided up between member states based on different factors. This includes the size of the wage bill. In the next couple of years, most governments will respond to the OECD proposals. We will need to see how the reactions pan out. Also how consequent legislation will affect businesses' tax strategies.

Corporate taxation is high on the political agenda. And a sensitive subject for the public. Legalities and economics are essential for organisations. But their external reputation in their "consumer & employer" brand is equally important. So pay attention to your tax policy or someone else certainly will.