In all tax affairs UBM aims to adopt a balanced and commercial position in which we make decisions as transparently as possible. We recognise that tax policy and tax management play a role in running a sustainable and responsible business.
We have prepared a statement of principles which is designed to promote and affirm UBM’s responsible approach to its tax affairs. The statement is in line with the principles set out by the United Kingdom’s Confederation of British Industry (CBI) and is based on the following five key observations:
- Public trust in the tax system is a vital part of any flourishing democracy.
- Transparency and co-operation between tax authorities and business contributes to greater compliance and a better functioning tax system.
- Most businesses comply fully with all the applicable tax laws and regulations, recognising the obligation of governments to protect a sustainable tax base.
- Tax is a business expense which needs to be managed, like any other, and therefore businesses may respond to legitimate tax incentives and statutory alternatives offered by governments.
- UK businesses contribute significantly to the UK economy and pay a substantial amount of tax comprising not only corporation tax, but also National Insurance, business rates and other taxes.
UBM’s tax planning principles
- UBM shall only engage in reasonable tax planning that is aligned with commercial and economic activity and does not lead to an abusive result.
- UBM may respond to tax incentives and exemptions.
- UBM shall interpret the relevant tax laws in a reasonable way consistent with a relationship of ‘co-operative compliance’ with the relevant tax authority.
- In international matters, UBM shall follow the terms of the relevant Double Taxation Treaties and OECD guidelines in dealing with such issues as transfer pricing and establishing taxable presence, and shall engage constructively in international dialogue on the review of global tax rules and the need for any changes.
UBM’s transparency and reporting principles
Relationships between UBM and tax authorities should be transparent, constructive, and based on mutual trust with the result that the relevant tax authority should treat UBM fairly and with respect, and with an appropriate focus on areas of risk. UBM should therefore:
- Be open and transparent with the relevant tax authority about its tax affairs and provide all relevant information that is necessary for the tax authority to review possible tax risks.
- Work collaboratively with tax authorities to achieve early agreement on disputed issues and certainty on a real-time basis, wherever possible.
- Seek to increase public understanding and trust in the tax system and, to that end:
- UBM shall consider how best to explain more fully its economic contribution and taxes paid.
- This may include an explanation of the policy for tax management, and the governance process which applies to tax decisions, together with some details of the amount and type of taxes paid.
If you have any questions about UBM’s tax principles, please contact us at email@example.com.