United Kingdom Tax Strategy
United Kingdom Tax Strategy
It is Telenor Group’s responsibility and our ambition to contribute to economic, environmental and social development of the countries where we are present, acting with accountability and transparency. We aspire to be a trusted company, recognized for strong business ethics.
We recognize all States sovereign right to introduce new tax legislation and to amend old legislation. We understand the importance of the taxes we pay in supporting the development and growth of the communities in which we operate and take a responsible approach in respect of our tax obligations.
We support a stable and transparent fiscal environment that supports investment, digital growth and inclusion, based on universal tax principles, levying tax based on predictable legislation applied by objective authority, and tested by independent court systems. Our aim is to engage constructively in dialogue with relevant authorities on tax legislation such as review of tax rules and the need for any changes.
We support initiatives to improve international transparency on taxation matters, including OECD measures on country-by-country reporting and automatic exchange of information.
Telenor Group has an internal Policy on Tax. This Policy is approved by our Group President & CEO. The Policy is owned by our Group CFO, who is responsible for the tax strategy, the supporting governance framework and for management of tax risk.
Day-to-day responsibility for each of these areas sits with the Group Head of Tax, who reports to the CFO, and will be communicating our tax strategy throughout the group.
Furthermore, Telenor´s Code of Conduct is our backbone, defining the ethical standards for how we all conduct our business. Our integrity should set an example and forge loyalty from all our stakeholders.
Basic principles of our tax strategy
We shall be a prudent tax payer, and is committed to ensuring compliance with all relevant legal tax filing, tax reporting and tax payment obligations globally.
We recognize a responsibility to pay the correct amount of tax in each of the jurisdictions in which we operate. We may respond to tax incentives and exemptions, and aim to avoid double taxation on capital gains and dividend repatriation. Contracts entered into between separate legal entities within the Telenor Group shall be documented and be in accordance with the arm’s length principle.
We shall be open and transparent with tax authorities about our tax affairs, and provide the information that is necessary for those authorities to perform their work in a collaborative, courteous and timely manner.
We look beyond financial risks to the wider impact that tax risk may have on our relationships with our stakeholders, including shareholders, tax authorities, the general public and the Telenor Group overall. Telenor aims to apply diligent professional care and judgement, including ensuring that all decisions are taken at an appropriate level and supported by documentation that evidence the judgements involved. We should always be able to defend our positions, and external advice may be sought in relation to areas of complexity or uncertainty to support in complying with the tax strategy.
We look to manage tax risk in a similar way to any other areas of operational risk across the Group. Business heads will generally take the lead role in identifying, managing and monitoring tax risks within the business. Business heads are required to immediately notify the Tax Policy owner about matters that may represent a tax exposure, and continuously update the Tax Policy owner on any subsequent developments.
In international matters, we shall follow the terms of the relevant Double Taxation Treaties and relevant OECD guidelines in dealing with such issues as transfer pricing and establishing taxable presence.
We regard the publication of this tax strategy as complying with the duty under paragraph 16(2) of Schedule 19 of the United Kingdom Finance Act 2016