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 of £316.9m in 2018, of which £129m was made in the UK.
Total tax contribution is made up of the taxes borne by the Group plus other taxes generated as a result of our business operations, where we collect tax on behalf of others and provide it to the relevant government tax authorities.
The most significant taxes borne by the Group are corporation tax and equivalent taxes outside of the UK, and employer social security contributions.
The taxes we collect for others include net payments of VAT and similar taxes outside of the UK, employee income tax deducted at source and employee social security contributions deducted from pay.
| |
UK |
US |
Other |
Total |
| Corporation Tax and Other Profit Taxes |
39.9 |
1.7 |
40.8 |
82.4 |
| Employment Taxes |
23.6 |
17.8 |
7.5 |
48.9 |
| Other Taxes |
4.6 |
1.7 |
1.5 |
7.8 |
| Total Taxes Borne |
68.1 |
21.2 |
49.8 |
139.1 |
| VAT and Other Sales Taxes Collected |
0 |
5.8 |
31.1 |
36.9 |
| Employee Income Tax Deducted at Source |
49.1 |
46.9 |
10.4 |
106.4 |
| Employee Social Security Contributions |
11.8 |
16.2 |
6.5 |
34.5 |
| Total Taxes Collected by Informa on Behalf of Governments |
60.9 |
68.9 |
48.0 |
177.8 |
| |
| Total Tax Contribution |
129.0 |
90.1 |
97.8 |
316.9 |
The amounts shown above are actual amounts paid in 2018, which may include amounts arising from other years. Amounts paid in currencies other than sterling have been converted at the average exchange rate.
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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.
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The Audit Committee
Is responsible for the Group’s Global Tax Policy and ensuring our principles and approach are adhered to
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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
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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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