This Policy Statement applies to the Financial Times Group Limited and all UK entities in its group, including Longitude
In September 2016, new HMRC legislation came into force requiring large businesses to publish their approach to the management of UK taxes.
The Longitude Tax Policy covers the core business principles we operate in relation to the management of UK and worldwide taxes.
Longitude is a private limited company incorporated in England and Wales and majority owned by the Financial Times Group.
Financial Times Group Limited is a private limited company incorporated in England and Wales and wholly owned by Nikkei Inc., a Japanese corporation. It is the holding company for the Financial Times group of companies (“FT Group” or “FT”) which includes subsidiaries in the USA, Hong Kong, China, Singapore, Germany, the Netherlands, the Philippines and the UK as well as smaller editorial operations in a number of other countries. The Financial Times Limited, incorporated in England and Wales, is the principal trading entity within FT Group.
The principles that guide us in managing taxes at Longitude, and at our parent company the FT Group, are:
- 1. To comply with all relevant tax laws, regulations and tax reporting requirements in all jurisdictions in which we operate, including claiming generally available tax incentives, reliefs and exemptions. If we discover instances of non-compliance we actively seek to resolve them with the appropriate tax authority.
- 2. To manage our tax affairs in accordance with FT’s Code of Conduct, to which all Longitude employees are signatories.
Our people are the most visible representation of our values and their behaviour must reflect Longitude’s position as a premium, trusted source of information. Whether it’s how we engage with each other, clients, sources or the wider community – Longitude employees’ actions directly impact the reputation and standing of our brand.
The FT’s Code of Conduct provides guidance on what is expected of each of Longitude’s employees in and outside the workplace.
- 3. To pay the right amount of tax, in the right place, at the right time. We seek to ensure that an appropriate amount of tax is paid according to where value is created within the normal course of commercial activity. Our approach to transfer pricing follows the “arms-length” principle as outlined in the OECD Transfer Pricing Guidelines i.e. cross border transactions take place as if the parties were unconnected.
- 4. To undertake only transactions that align with business activities and business objectives and not to seek tax advantage as a primary objective. In structuring our business, we will not put in place any arrangements that do not have commercial substance, or arrangements that are contrived or artificial. We will seek to achieve a more favourable tax outcome where a genuine choice exists between different options. In considering and deciding between different options, the factors we consider include commercial, strategic and reputational impact. Where there is significant uncertainty or complexity involved, we may seek external tax advice.
- 5. To have an open and honest working relationship with HMRC and other tax authorities. Where necessary, to discuss and consult on our interpretation of the law with HMRC and other tax authorities as issues arise. Where appropriate, we will use tax clearances to obtain agreement in advance from HMRC prior to undertaking transactions.
- 6. To assess and document all known risks within the business, including tax risks. It is inevitable, given the scale of our business, the complexity of tax laws and the volume of tax obligations associated with conducting our business, that tax risks will arise from time to time. FT and Longitude actively seek to assess, on an ongoing basis, all mitigating actions that can be taken to reduce and minimise risk, including tax risk, where appropriate.
- 7. Longitude and the FT have a zero-tolerance policy towards the facilitation, or failure to prevent the facilitation, of tax evasion by anyone associated with, or acting for or on behalf of, the FT or Longitude.
- 8. To continually review and assess tax risk and compliance issues, in view of changing legislation and new business activities.
These principles, which are approved and owned by Longitude and FT’s Management Board, guide us in delivering our two overriding objectives for tax management:
- a. To protect value for our ultimate parent company and its shareholders, in line with our broader fiduciary duties;
- b. To comply fully with all relevant legal and regulatory obligations, in line with our ultimate parent company and its stakeholders’ expectations.
This statement was published 9 April 2020