Global Tax Strategy
Global Tax Strategy
The overriding policy of BTG is to pay the taxes which are legally due in the territories in which it operates and to make filings and tax payments on a timely basis.
Tax strategy does not drive our actions, but rather supports BTG’s business decisions and business strategy.
Tax decisions take account of the views and interests of all of our stakeholders and are in accordance with the BTG Code of Conduct and core values. BTG operates policies, procedures and governance to ensure compliance with tax laws in the territories in which we do business.
BTG is committed to transparent relationships with all tax authorities. BTG discloses tax information in our annual report and half-year statement in a clear and open manner, to provide appropriate detail on the effective tax rate of the group and the amount of tax paid.
This document, which applies to the financial year ending 31 March 2018, sets out information on
- How we manage tax risk
- Our approach to tax planning and tax risk
- How we interact with HMRC and other tax authorities
This strategy applies to BTG plc and its subsidiary companies and in making this strategy available the group is fulfilling its responsibilities under Paragraph 16(2), Schedule 19 of the Finance Act 2016.
Management of Tax Risk
The Chief Financial Officer has responsibility for corporate tax strategy and compliance and periodic reporting on tax matters is made to BTG’s Audit Committee. Significant tax planning is approved by the Board.
BTG has a well-qualified and resourced tax team who receive the necessary guidance and training to keep up to date with new tax legislation and are supported to seek tax advice where appropriate. Regular lines of communication are maintained with commercial, R&D and other functional teams to ensure that the tax effects of any business developments are identified and understood.
BTG has designed tax processes and controls to ensure timely and accurate filing of tax returns and related tax payments.
BTG has adopted a risk management program to ensure that internal processes are in place to identify, assess, monitor, manage and mitigate key risks effectively. The group has identified its key tax controls, which are monitored and tested on a periodic basis by internal audit in accordance with a plan agreed with the Audit Committee. Whilst tax processes and controls aim to identify and manage potential tax risks, no risk management strategy can provide absolute assurance against loss or unforeseen events occurring, or mitigations proving ineffective.
Like many businesses we have tax risk as a result of cross border supply chains, which leads to potential tax uncertainty. It is possible that tax authorities could take different views on intra-group pricing which could lead to the same income being taxed in two or more territories. In order to mitigate this risk, cross border transactions are carried out at arm’s length prices in accordance with principles set out by the OECD and documentation is maintained to support the pricing.
Where possible, tax risk is managed by discussing issues in advance with tax authorities and obtaining tax clearances where appropriate.
Approach to Tax Planning and Tax Risk
The BTG Code of Conduct sets the framework for our approach to tax planning and tax risk.
BTG’s approach to tax planning is that the appropriate amount of tax must be paid in each country where we do business. In order to maximise sustainable shareholder value, we will make use of tax incentives, reliefs and other statutory alternatives offered by governments to the extent that these are supported by genuine commercial activity, are of a type that the tax authorities would expect and do not carry significant risk of damaging our relationship with fiscal authorities.
Tax risk is assessed for each significant transaction and is factored into decision making processes. We do not have defined levels of acceptable tax risk and tax risk is assessed in conjunction with other business risks.
Tax legislation is complex, and we mitigate the risk of incorrect interpretation of relevant tax laws by obtaining advice from reputable advisors on areas where tax law is unclear or where internal expertise or resources are insufficient.
Working with Tax Authorities
BTG seeks to have an open, accountable and honest relationship with all tax authorities.
Significant issues are discussed in advance where possible and requests for information are responded to quickly. Returns are submitted on time with an appropriate level of disclosure.
If our view on tax treatment differs from that of a tax authority we will work constructively with the relevant tax authority with the aim of achieving a quick resolution of the issue.
Our Corporate Responsibility (CR) Committee comprises individuals from across the business, meets quarterly to discuss new trends, set targets and monitor progress.Our Values
We believe it is important to forge close relationships with the local communities where we operate to build trust in our business and an understanding of what we do.Read more
We invest in developing people, capabilities, and systems to meet the needs of our stakeholders in a sustainable and responsible way.Read more