Observation of Tax Transparency Reporting by Top 40 JSE-Listed Firms

Abstract

This study evaluates the extent and quality of tax transparency reporting among the Top 40 firms listed on the Johannesburg Stock Exchange (JSE), distinguishing between mandatory tax disclosures and voluntary transparency practices. A qualitative, disclosure-based research design was employed, involving content analysis of publicly available annual reports, integrated reports, and sustainability reports. A structured tax transparency framework grounded in stakeholder theory and legitimacy theory, and adapted from prior empirical studies was applied to systematically assess tax-related disclosures. Findings indicate high compliance with mandatory tax disclosure requirements, reflecting strong adherence to accounting standards and regulatory obligations. In contrast, voluntary tax transparency shows considerable variation: firms predominantly provide narrative, policy-oriented, and governance-related information, while detailed, forward-looking, and jurisdiction-specific disclosures remain limited. The discussion highlights that voluntary transparency is shaped by stakeholder expectations, legitimacy concerns, and perceived reputational and commercial risks, leading to selective disclosure. Regulatory compliance emerges as the primary driver of tax reporting, whereas voluntary practices are influenced by firm-specific and contextual factors. The results hold relevance for investors, regulators, and policymakers seeking greater corporate accountability, and for standard-setters aiming to enhance the consistency and depth of tax transparency reporting. Overall, the study enriches the limited literature on corporate tax transparency in emerging markets by offering contemporary empirical evidence from South Africa and identifying key areas requiring improvement in voluntary tax disclosures.