UK tax strategy
As of 31 December 2020
Refinitiv is a group formed on 1 October 2018 as a joint venture between Blackstone and Thomson Reuters. Refinitiv has operations in numerous countries, including the UK (collectively, the “Group”).
UK law requires the Group on an annual basis to publish its tax strategy online in relation to UK taxation. The Group’s UK tax strategy has been hereby published in accordance with paragraph 16(4) of Schedule 19 (“the Schedule”) to Finance Act 2016. This document applies to the UK companies in the Group headed by Refinitiv UK Parent Limited (“RUK”) in accordance with paragraph 19 of the Schedule.
References in this document to “UK taxation” and “UK taxes” are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Group Tax, Diverted Profits Tax, PAYE, NIC, VAT, Customs Duties, Excises Duties Stamp Duty Land Tax and Stamp Duty Reserve Tax.
The tax strategy described in this document applies from the date indicated above until it is updated.
RUK is committed to compliance with applicable laws, rules and regulations in relation to UK taxation. RUK is also committed to having a professional, transparent and honest working relationship with Her Majesty’s Revenue & Customs (“HMRC”) in relation to UK taxation matters.
Governance in relation to UK taxation
- Ultimate responsibility for overseeing the tax strategy of the Group rests with the Board of Directors of the parent company, Refinitiv Holdings Ltd. RUK’s tax strategy is consistent with the Group’s overall tax strategy. The Group's overall tax strategy is consistent with its overall corporate strategy.
- Executive management of the Group manages the day-to-day business and affairs of the Group, under the supervision of the Board of Directors of Refinitiv Holdings Ltd. The Chief Executive Officer's executive leadership team is the Executive Leadership Team (“ELT”). The Group’s Chief Financial Officer (“CFO”) is the ELT member with executive responsibility for tax matters.
- The Group’s Global Head of Tax, (“GHOT”) has day-to-day responsibility for the management of the Group’s tax affairs and reports to the CFO.
- The Board of Directors of Refinitiv Holdings Ltd or a committee thereof monitors the Group’s tax strategy and receives periodic updates relating to tax matters from the CFO and the GHOT.
- RUK is committed to meeting its legal and regulatory requirements in respect of UK taxes, including filing applicable tax returns and making required payments of tax when legally due.
- The Group operates an internal control framework which includes processes to ensure RUK meets its legal and regulatory requirements and to assess tax risk, including the use of tax technology, where appropriate. Reasonable care is applied in relation to processes which could materially affect compliance with tax obligations.
- The Group has an internal team of tax professionals reporting to the GHOT, including a team of tax professionals located in the UK responsible for RUK’s tax affairs. The UK based tax team is responsible for RUK’s tax compliance obligations and for monitoring and addressing business or legislative developments that might impact RUK’s tax obligations.
- Processes relating to different taxes are regularly reviewed by the Group’s internal tax department in the context of any business or legislative developments or changes in the Group's corporate/tax strategy.
- The Group is not prescriptive in terms of the level of acceptable tax risk it undertakes and each matter is assessed on its specific facts and circumstances, and within the Group's governance framework. Due to the size, breadth and complexity of the Group’s business, the Group’s internal tax department actively and continuously identifies, monitors and manages tax risks so they remain aligned with the Group’s business and strategic objectives.
- As part of the Group's Enterprise Risk Management ("ERM") process, a management risk group of various senior leaders of the Group tracks and monitors enterprise risks (which include, among other things, risks related to tax matters). The Board of Directors of the Group or a committee thereof is primarily responsible for overseeing management's ERM process.
- The Group maintains procedures designed to prevent the facilitation of tax evasion in accordance with Part 3 of The Criminal Finances Act 2017.
Attitude towards tax planning
- As part of its overall decision making and risk assessment process in relation to tax initiatives, RUK considers the Group’s reputation, brand, corporate and social responsibilities as well as the applicable legal and fiduciary duties of officers, directors and employees of the Group.
- In line with the Group’s approach to taxes, RUK enters into transactions that it reasonably believes are bona fide and compliant with applicable laws, rules and regulations. RUK does not undertake transactions without a business purpose or commercial rationale.
- The tax consequences of material commercial transactions impacting RUK are reviewed and considered by the Group’s internal tax department. External tax or legal advice might be sought where the anticipated tax result of a commercial transaction is considered to be unclear from UK legislation, or where the anticipated tax result is subject to varying interpretations.
- While each matter is assessed on its specific facts and circumstances, RUK will generally not take a tax position in respect of a particular issue without reasonably believing that it is more likely than not that RUK's position would be successful if challenged by the UK tax authorities.
- RUK utilises certain available tax incentives in the UK, including, for example, R&D tax incentives in line with UK legislation.
- The Group has a Code of Business Conduct and Ethics that applies to its employees, directors and officers around the world. The Code states that if someone becomes aware of anything that they believe may violate a law, regulation, the Code or another Group policy, the individual should report the violation or what the individual believes or suspects is a possible violation. Reporting channels include a confidential and anonymous hotline.
Relationship with HMRC
- RUK believes it has an established, professional, transparent and honest working relationship with HMRC and commits to making accurate disclosures in its filings, submissions and correspondence with HMRC in relation to UK tax matters.
- Where appropriate, RUK discusses the anticipated UK tax consequences of material transactions with HMRC in real time, or in advance of submitting a tax return.
- RUK provides HMRC with timely responses to enquiries into its UK tax affairs and seeks to bring any matters under discussion with HMRC to conclusion as efficiently as possible.