Tax Governance and Risk Management
Tax Governance and Risk Management Policy
This statement sets out the Group’s approach to conducting its tax affairs and dealing with tax risks for the year ending 31 March 2022. It complies with the requirements for a published tax strategy under UK legislation and is published in accordance with paragraph 16(2), Schedule 19 Finance Act 2016. All references to tax legislation and tax authority include the policy as applicable to UK tax legislation and HMRC but also apply in other territories in which the Group operates.
The Economist Group’s Leadership Team is the senior executive team responsible for carrying out the strategy determined by the Board. Our leadership teams are focused on achieving the long-term sustainable success of our business. We are committed to independence, integrity and delivering high quality in everything we do. These principles equally apply in relation to the Group’s global tax responsibilities.
The Economist Group’s audit and risk committee is the most direct channel for communication and interaction with the Board on accounting and tax issues. This policy is owned by the Group Chief Financial Officer, a member of the Leadership Team, and is approved by the Economist Group’s audit and risk committee.
The Group operates in a clear and ethical context. The Economist Group’s guiding principles are outlined in the Annual Report and support all staff to make decisions and adopt positions that are consistent with the Group’s attitude towards appropriate commercial conduct. In relation to the Group’s tax obligations:
The tax function operates as an integral part of the wider support function for the Group’s
commercial activities. It also operates as an integral part of the Group’s regulatory
External advisers are consulted to ensure the tax function remains up to date with legislative
changes and to provide technical guidance and external review and commentary on the Group’s tax matters as required;
As an international company, we conduct business in many different markets around the world. In all the countries in which we operate, we abide by local laws and regulations;
All tax returns we file are correct. Any areas of uncertainty are clearly supported in terms of
documentation and legal interpretation;
The Group takes tax compliance obligations seriously and expects all employees and agents to meet all their tax obligations in connection with dealings with The Economist Group including not facilitating tax evasion by third parties as set out in the Criminal Finances Act 2017.
Relationships with Tax Authorities
Where tax authorities request or encourage it, the Group seeks to establish and maintain constructive relationships.
In the UK, our most significant jurisdiction and headquarters location, we see HMRC as a key stakeholder in the Group. We have a designated HMRC Customer Compliance Manager and, at their request, we have regular meetings to ensure ongoing communication.