Egmont UK – Tax Strategy
Egmont UK is part of the Danish based Egmont Group. The Egmont Group has operations in 30 jurisdictions, including the UK. The commercial operations in the UK are conducted via Egmont UK Limited. In addition to this the Egmont Group has a number of inactive subsidiaries in the UK. This Tax Strategy is applicable to all subsidiaries in the UK.
It is noted that Egmont UK Limited solely operates within the UK.
Egmont UK is committed to:
- be fully compliant with tax laws across all relevant jurisdictions.
- ensure paying the tax we are legally required to pay in all the countries in which we operate.
- apply tax incentives in the manner intended by governments and fiscal authorities.
- conduct transactions between group companies on an arm’s-length basis and in accordance with OECD principles.
Responsibility for the tax strategy, the supporting governance framework and management of tax risk ultimately sits with the Chief Financial Officer in Egmont UK. Key risks and issues related to tax are escalated to and considered by the Directors. Egmont UK actively seeks to identify, evaluate, monitor and manage tax risks to ensure they remain in line with objectives.
Egmont UK’s tax strategy aligns to the companies’ wider risk and control framework. The Directors review the tax strategy annually.
Tax risk management
Egmont UK is exposed to a variety of tax risks:
- Tax compliance and reporting risks – Risks associated with compliance failures such as submission of late or inaccurate returns, the failure to submit claims and elections on time or where finance or operational systems and processes are not sufficiently robust to support tax compliance and reporting requirements.
- Transactional risks – Arising where transactions are carried out or actions are taken without appropriate consideration of the potential tax consequences or where advice taken is not correctly implemented.
- Reputational risks – Non-financial tax risks that may have an impact on relationships with stakeholders, including tax authorities and the general public.
Egmont UK aims to manage tax risk in a similar way to any area of operational risk across the group.
Where appropriate, Egmont UK looks to engage with tax authorities to disclose and resolve issues, risks and uncertain tax positions. The subjective nature of many tax rules does however mean that it is often impossible to mitigate all known tax risks.
Tax compliance and relationship with tax authorities
Egmont UK is committed to calculate all taxes correctly in accordance with the law and pay them when due. Statutory tax returns for all taxes should be filed correctly, contain accurate information and be filed on a timely basis. All other tax obligations in the jurisdictions in which Egmont UK operate should be fully complied with.
There is no prescriptive level of tax risk which Egmont UK is prepared to accept, but the aim is to minimise the risk as far as possible.
Egmont UK seeks to maintain open and transparent relationships with the tax authorities and other relevant bodies in the jurisdictions in which we operate. Any errors or mistakes in tax returns will be fully disclosed and notified to the relevant tax authority as soon as practicable. Enquiries raised by tax authorities will be dealt with on a timely basis, answered in an open way with a full response to the enquiry. Advance tax clearance of key transactions will be obtained where tax treatment is uncertain, and a tax clearance procedure is available.
Egmont UK recognises the responsibility to pay the correct amount of tax in each of the key jurisdictions in which it operates.
Egmont UK will ensure that its tax position supports the business, reflects genuine commercial activity and complies with applicable laws and regulations. The business only carries out tax planning to the extent it reflects the commercial activity of the business and is not undertaken for artificial/purely tax motivated reasons. Egmont UK may, however, seek to benefit from legislative reliefs or incentives such as capital allowances in the spirit of the law.
External advice may be sought in relation to tax planning or areas of complexity or uncertainty to support Egmont UK in complying with its tax strategy.
Transactions between group companies are conducted on an arms-length basis in accordance with appropriate transfer pricing rules and OECD principles. This ensures that Egmont UK’s global profits are properly allocated to the jurisdiction in which those profits are generated based on sound commercial activities.
Egmont UK regards our publication of this tax strategy as complying with the duty under paragraph 16(2) Schedule 19 Finance Act 2016 to publish a tax strategy for the financial year ending 31 December 2017.
Companies covered by this tax strategy:
- Egmont Holding Limited
- Egmont UK Ltd.
- Egmont Magazines Ltd.
- Egmont Book Publishing Ltd.
- Egmont World Ltd.
- WH Books Ltd
- Dean & Son Ltd.
- Worlds Work Ltd.
- Egmont CB Ltd.
- Egmont Interactive (UK) Ltd.
- Egmont Publishing Ltd.
- Kaye & Ward Ltd.
- Nordisk Film Post Production Sales (UK) Ltd.