SNC-Lavalin is a global, fully integrated, professional services and project management company with offices around the world including the UK.
This document is published in accordance with Schedule 19 to Finance Act 2016, applies to all of SNC-Lavalin’s UK subsidiaries (“SNC-Lavalin UK”) and will remain in force from the date of publication until superseded.
Tax strategy for the financial periods ending 31 December 2017
This strategy is published on behalf of SNC-Lavalin UK in accordance with paragraphs 19(2) and 22(2) of Schedule 19 to Finance Act 2016.
Approach to risk management and governance arrangements in relation to UK taxation
SNC-Lavalin UK is exposed to a variety of tax related risks including tax compliance and reporting, transactional and reputational. Its objective is to adhere to all relevant tax regulations and ensure tax compliance in each country in which it operates. In addition, SNC-Lavalin UK maintains internal policies and procedures to support its tax governance framework, which aligns with its wider risk and control framework.
Day-to-day responsibility for managing UK tax resides with SNC-Lavalin UK’s finance teams with support, as appropriate, from SNC-Lavalin’s global tax team. The global tax team, led by the Senior Vice-President – Taxation, has the mission of supporting SNC-Lavalin’s businesses, including the UK, to ensure compliance with and guidance on all tax matters and internal controls. The SVP – Taxation reports directly to the Chief Financial Officer who, by delegation of the Board of Directors, is responsible for SNC-Lavalin’s overall tax strategy, supporting a governance framework and management of tax risks, with key tax issues being reviewed by SNC-Lavalin’s Audit Committee.
Attitude towards tax planning (so far as affecting UK taxation)
SNC-Lavalin UK has a responsibility to pay its appropriate share of tax in each of the jurisdictions, including the UK, in which it operates while, at the same time, balancing its responsibilities to its shareholders. SNC-Lavalin UK, in consultation with the global tax team, structures its businesses in a tax efficient manner while remaining compliant with all UK, and other country, applicable tax laws. Where there are alternative methods to achieve the same commercial results or business purpose, SNC-Lavalin UK will consider all relevant factors, including taxation, before deciding the best option. The UK Tax Strategy is in line with the wider SNC-Lavalin tax strategy.
On a case-by-case basis, where there is uncertainty as to how the relevant law should be applied, and depending on other factors such as materiality, uncertainty, application of recently enacted legislation or special technical challenges, SNC-Lavalin UK may seek external professional advice to support the decision making process.
Level of risk in relation to UK taxation that SNC-Lavalin UK is prepared to accept
SNC-Lavalin UK assumes a conservative approach to tax risk and to the adoption of tax positions. Assessment of risk will take account of reputation, brand, governmental relationships, the benefit of certainty and tax authority relationships.
It is understood that there is always some level of tax risk associated with operating in multiple tax jurisdictions, frequent changes in tax laws and different tax authorities taking differing interpretations regarding the application of relevant tax legislation. It does however value certainty on future cashflows. It values and takes very seriously its reputation as a responsible tax payer not least as it recognises the potential impact of not complying on its ability to win work, particularly with Government bodies.
Approach towards dealings with HMRC
SNC-Lavalin UK is committed to the principles of openness, cooperation, communication and transparency in its approach to dealing with HMRC. All dealings with tax authorities, government officials and third parties should be undertaken in a professional, courteous and timely manner. In the event of an error arising, SNC-Lavalin UK will seek to remedy, disclose and proactively resolve, as soon as reasonably practical after identification as required by law.
SNC-Lavalin UK is committed to the framework for co-operative compliance as developed by the OECD and used by HMRC.