Anti-poverty charity ActionAid has published a guide for investors and businesses on developing a more socially responsible approach to corporate tax.

The charity says that aggressive tax practices are now generating reputational and regulatory risks for companies in developing countries as well as the UK. Its publication, Tax responsibility: an investor guide summarises these risks and outlines seven criteria on tax responsibility, providing questions investors can use to help determine a company's risk and performance.

ActionAid says its recommendations are based on its survey of the FTSE 100's tax policies, practices and reporting, which found that 91% of listed companies did not make details of their tax policy publically available. It hopes investors will make use of its guide to ask questions at corporate AGMs.

The charity says it has already identified some multinationals who provide examples of good practices. These include Legal & General, which now specifically rules out the use of tax structures deemed risky by revenue authorities, and Centrica, which goes further than legally required when reporting on its tax structures and positions around the world.

Mike Lewis, ActionAid tax justice policy adviser, said: 'Investors are demanding more information about the tax practices and positions of the companies they invest in. Everyone would benefit from clear benchmarks which allow companies to communicate their practices clearly, and investors to gauge risks.'