This Tax Strategy applies to all Endemol Shine Group entities and has been approved by the Chief Financial Officer. The Group Tax Strategy will be reviewed by the Audit Committee on an annual basis.
Endemol Shine Group is one of the world’s largest independent production companies, operating in 23 countries and producing over 800 productions every year. With world-class production, distribution and commercial capabilities, we operate along the entire media value chain on a global and local axis. Creative diversity is in our DNA. We are respectful, brave and committed to acting responsibly in everything that we do.
This Tax Strategy describes the strategic approach and attitude of Endemol Shine Group’s Tax Function as operated through Group Tax and supported by local operating company finance and tax teams. Our tax strategy is aligned with the business strategy, ambitions and objectives of Endemol Shine Group, and sets out the standards of behavior to which we expect all Endemol Shine Group operating companies to adhere to.
Our Approach to Group Tax Strategy
At Endemol Shine Group, we are strong believers in rigorous but fair competition within the framework of applicable laws and regulations. We want to act fairly, responsibly and with integrity towards all our stakeholders and in all jurisdictions in which we operate. And our approach is no different when it comes to taxation.
Our geographic scope and international businesses are exposed to a substantial amount and variety of taxes. We are therefore committed to acting responsibly and professionally to manage all taxes and risks that arise in all the jurisdictions in which we operate.
In addition, we aim to comply with the laws and regulations of each country in which we operate. Our output will be well sourced and based on sound evidence. Any information has to be recorded and reported in a fair, timely, full and accurate manner, following good business practices, applicable accounting standards and local laws.
Within this context, Group Tax is committed to operating as a Center of Excellence within the Group. Our approach is to partner with Endemol Shine operating companies to ensure that:
The Endemol Shine Group Tax Strategy and policies and guidelines are consistent with OECD recommendations for responsible business conduct in a global environment.
The Group Tax Mandate
Endemol Shine Group Tax is part of the finance function and reports directly to the Group Chief Financial Officer.
Group Tax is exclusively accountable for all consolidated tax matters. This extends to Corporate Income Tax and Incentives, Withholding Taxes, Sales and Use Taxes, VAT, Customs and Excise Duties, Capital Taxes and Stamp/Registration Duties, and also includes interests and penalties or other additions on taxes imposed by Tax Authorities.
Advice is sought from external advisors on material transactions and whenever the necessary expertise is not available within Endemol Shine Group Tax.
Tax Governance and Risk Management
Endemol Shine Group is at all times committed to observing all applicable laws, rules, regulations and reporting and disclosure requirements, wherever there is a requirement to do so as a result of our business presence and operations, under guidance of relevant international taxation standards (the OECD Guidelines).
We apply professional diligence and care in the management of all risks associated with tax matters, and ensure governance and assurance procedures are appropriate. Group Tax is involved in all significant business developments and commercial transactions. Group Tax will collaborate with Endemol Shine operational businesses to provide advice and guidance necessary to ensure compliance, obtaining external advice where deemed necessary.
We report to the Audit Committee (at minimum) on an annual basis, providing updates on tax reporting, compliance and exposures and providing updates on potential claims that may have financial impact on the Endemol Shine Group.
Approach to Dealing with Tax Authorities
Wherever we operate, we strive to establish, develop and maintain strong, mutually respectful relationships with local tax authorities and other government bodies, engaging in open, transparent and constructive dialogue. All our discussions and disputes will be conducted in a collaborative, courteous and timely manner.
The aim is to proactively deal with disputed taxation matters, avoid unnecessary challenges and disputes to achieve certainty wherever possible.
Attitude to Tax Planning
Group Tax is a strong believer that tax is an integrated part of Endemol Shine’s business operations. We add value by proactively engaging with the business to ensure that any tax consequence as a result of proposed business transactions, and any tax compliance or administrative complexities arising from business proposals are fully understood, evaluated and included in the decision making process.
Group Tax will use its best judgement when engaging in tax planning initiatives and make use of incentives and reliefs promoted by government authorities, but will not use them for purposes which are knowingly contradictory to the intent of the legislation. Endemol Shine Group aims to pay the appropriate amount of tax in each of the jurisdictions in which we operate and where the value is created.
Endemol Shine Group does not use contrived or abnormal tax structures that are intended to avoid paying taxes, having no commercial substance. So-called ‘tax havens’ are not used if there is no actual business operation to support doing so.
The guiding principle we work with is “tax follows the business and is aligned with the existence of a commercial purpose”.