Paying tax is an integral part of our commitment to the societies in which we operate. Taxes help governments provide vital services and infrastructure, which we in turn rely on to run the Group successfully, and a fair and effective tax system is in the interests of tax-payers and society at large. Our approach to managing tax affairs is:
To make transparent tax disclosures that meet all regulatory requirements and reflect best practice
To comply with and follow the spirit of the law in the countries where we operate
To engage constructively and openly with local and national tax authorities
To pay our taxes in the jurisdictions where our revenue-generating activities take place
To use available tax incentives to optimise returns to shareholders As a UK headquartered business, we work closely with the UK tax authority HMRC
We take a low risk approach to tax planning. In addition, we have achieved low risk status as defined by HMRC for our UK activities. HMRC judges the tax risk of a business according to factors such as tax planning, compliance with tax filing requirements and openness of engagement and periodically reviews it. Our goal is to maintain this rating in the UK.
This approach limits the likelihood of disputes with tax authorities and is unlikely to give rise to unexpected tax liabilities.
Tax risks can also arise from ongoing business activity. We operate a regular risk review process to identify if trading activity is giving rise to tax risk and how it can be remedied.
When interpretation of law is uncertain, we seek to discuss the issue with HMRC (or other tax authority as appropriate) at the time or refer to it when tax returns are filed, depending on the significance of the matter.
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Informa made a total tax contribution (TTC) of £208.4m in 2017 of which £89.5m was made in the UK.
TTC is made up of all the material taxes we pay out of our profits, and the main taxes that are paid by others but are generated as a result of our business operations.
The material taxes we pay out of our profits are Corporation tax (and its equivalents outside the UK) and employers social security contributions. The other taxes we have taken into account in arriving at TTC are net payments of VAT (and similar taxes), employee income taxes we have deducted at source and the employee’s social security contributions that we have deducted from their pay.
During 2017 we benefited from a corporate tax refund of $7.1 million in the USA, principally relating to the carryback of losses.
||2017 Amount paid in UK
||2016 Amount paid in UK
|Corporation Tax and similar taxes £m
|Employer's Social Security Contributions £m
|Total taxes paid out of profits £m
|Net VAT and sales taxes
|Employees' income taxes deducted at source £m
|Employee's social security contributions £m
|Total taxes paid by others but generated by our businesses £m
|TOTAL TAX CONTRIBUTION £m
Notes – amounts shown are actual amounts paid in the year, which may include amounts arising from other years. Amounts paid in currencies other than sterling have been converted at the average exchange rate
Reconciliation of tax at UK rate to cash tax paid (£m)
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Tax advice is taken on matters when in-house resource is not sufficient; this can occur when we do not have relevant experience in the tax issues or in the jurisdiction involved.
The Global Tax policy is provided to all Informa Colleagues, and more detailed guidance given to those working in Finance roles that have a direct connection with tax affairs.
The Audit Committee
Is responsible for the Group’s Global Tax Policy and ensuring our principles and approach are adhered to
The Group Corporate Services Director
Manages the tax function. This team has close contact with finance leaders in each of Informa’s Divisions and Shared Service Centres
The Group Tax Committee
Oversees the day to day management of tax policies and standards. This comprises the Group Chief Executive, Finance Director, General Counsel & Company Secretary, as well as the Group Corporate Services Director and Group Treasurer
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