Lloyd’s Register is publishing its tax strategy pursuant to the requirement to publish a United Kingdom tax strategy outlined in Schedule 19 of the 2016 Finance Act.
The statement is effective for the period ending 31 December 2020 and applies to Lloyd’s Register Group Limited, its subsidiaries worldwide and to its parent, Lloyd’s Register Foundation, a charity which is governed by the Charity Commission rules and guidance (‘the Group’).
The approach of the Group to risk management and governance arrangements in relation to taxation
Lloyd’s Register’s policy is to comply with all applicable laws, rules, regulations and reporting requirements in all tax jurisdictions where the Group operates.
We manage tax in line with our governance framework and risk management procedures which reflect the regulatory, legal and commercial environment in those locations.
The board of directors of Lloyd’s Register Group Limited has approved this approach and has delegated responsibility to the Group Audit Committee to oversee the Group’s tax affairs and risks.
The Group Tax Director is responsible for establishing a framework of appropriate policies, processes and systems.
The attitude of the Group towards tax planning
To the extent that the Group undertakes any tax planning, it is with the purpose of supporting the commercial needs of the business, with an understanding of the tax consequences of any decisions made.
Tax is a business expense which needs to be managed, like any other. We, therefore, seek to make use of incentives and reliefs to reduce our tax cost while working to ensure that these reliefs are not used for purposes which are knowingly contradictory to the intent of the legislation.
The level of risk in relation to taxation that the Group is prepared to accept
Tax risk is managed within the overall risk framework of the Group. Our risk management systems and internal control framework provide a methodology for managing tax risk in relation to the Group’s affairs. Maintaining a positive working relationship with taxing authorities helps to ensure we pay the correct amount of tax at the right time, so as to minimise our tax risk and have certainty over our tax filings.
The approach of the Group towards its dealings with taxing authorities
We seek to have an open, honest and collaborative working relationship with HMRC and other taxing authorities around the world, pro-actively engaging in relation to matters of doubt. We respond clearly and promptly to queries raised, providing appropriate disclosure of corporate information where applicable. We operate with integrity in our tax compliance and reporting, and as an organisation, we strive to ensure that we adhere to our compliance obligations.