The PA Consulting Group's tax strategy is to plan and operate in a transparent manner. We want our tax position to be fair – and be seen as being fair - for our shareholders and for society in all countries where we operate.
This document sets out how PA implements this strategy. It covers four areas:
As part of its overall risk management policy, the PA Board has put in place various structures and processes to deliver effective management of the group's tax risks:
The Audit Committee is responsible for overseeing PA's tax risks. It reports regularly to the Board. The Audit Committee approves the group's tax strategy and receives regular updates on tax matters.
The Investment Committee has operational oversight of PA's tax affairs. The Investment Committee is responsible for approving the tax impact of all material transactions.
The CFO, as Senior Accounting Officer, is responsible for ensuring that PA maintains appropriate tax accounting arrangements. This involves establishing financial controls and systems to ensure that the group files accurate tax returns and meets its legal obligations to tax authorities.
We continue to seek non-controversial ways to improve the group's tax position, and influence the key drivers of PA's tax rate.
Our approach is to engage in efficient planning that supports PA's business and reflects its commercial and economic activities.
In common with other businesses, PA uses external tax advisers to assist with more complex issues, and to help it validate in-house proposals.
As a supplier to the UK and other national public sectors, PA fully supports the principles contained in the UK Government's Procurement Policy Note "Measures to promote tax compliance", issued by the UK Cabinet Office. We do not engage in abusive tax arrangements or artificial tax avoidance schemes.
We aim to be a responsible taxpayer in all countries where we operate.
PA's tax position is managed centrally from the UK. This team ensures that PA operates consistent and responsible tax processes, in all PA countries.
We apply the same approach to all jurisdictions, including those countries where a tax authority has less capacity to scrutinise issues.
We also encourage responsible tax behaviour in our supply chain, by requiring our suppliers to meet certain standards.
However tax law can be complex, and occasionally there are differences of interpretation or areas of uncertainty. If challenged, PA will defend its tax positions, and will engage professional advisers to assist, when appropriate.
We aim to build good relationships with tax authorities in all countries where we do business.
PA works transparently with local tax authorities in order to meet their statutory requirements.
We adopt positive and proactive disclosure, and co-operative working practices.
We seek to be treated as a taxpayer like any other, and we do not try to obtain preferential treatment in tax rulings or settlements.
Our main tax relationship is with the tax authority in the UK, HMRC, because the majority of PA's subsidiaries and employees are based in the UK. We therefore hold regular meetings with HMRC to share information on PA's activities and to discuss the tax treatment of its transactions. In other jurisdictions, although there may be less regular contact with tax authorities, we still respond positively and transparently to their requests for information.