HENRY SCHEIN UK GROUP TAX STRATEGY
PERIOD ENDED 31 DECEMBER 2021
PUBLISHED 19 NOVEMBER 2021
The following information is provided in compliance with the requirements of Paragraph 22(2) Schedule 19 of Finance Act 2016.
The strategy published herewith applies to UK tax resident companies and UK permanent establishments within the Henry Schein Group, a Multi-National Enterprise (MNE) which meets the OECD's Country-by-Country Reporting framework threshold of global turnover in excess of 750 million Euros. The MNE is headed by Henry Schein, Inc. a US Fortune 500 company, listed on NASDAQ.
The UK Group pays and collects a broad range of UK taxes, including corporation tax, value added tax, customs duty, employer and employee taxes across a number of businesses. These taxes represent a significant contribution to the UK economy.
Our UK Group Tax Strategy is updated and published on an annual basis. It is approved by the Vice President of Global Taxes in conjunction with the Board of Directors, UK CFOs and UK Managing Directors.
The UK Tax Strategy is underpinned by our internal rules on corporate governance, our code of ethics and our worldwide business standards which apply to every Team Schein Member.
Henry Schein has been recognised as a 2021 World's Most Ethical Company® by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. This is the tenth consecutive year that Henry Schein has been honored with this award.
The headings under which we publish our tax strategy below follow the structure as set out in the relevant legislation.
Our approach to tax risk management and governance in relation to UK taxation
The overall responsibility for UK tax risk management and governance lies with the Vice President of Global Taxes, who maintains direct reporting lines to the Board of Directors. The day to day management of the UK tax affairs of the group is undertaken by the UK Tax Team, supported by the wider Global Tax Team.
The UK Tax Team subscribes to an online tax library database, makes use of external training courses on a regular basis and is supported by a network of external advisors who can be consulted on any tax matter.
Internal tax processes and policies are documented in line with the requirements of the Senior Accounting Officer and Corporate Criminal Offence regulations in the UK, which provides the platform on which we can identify, consider and mitigate tax risks. The UK Tax Team continually monitors, reviews and tests internal processes and controls to ensure that they remain valid in a constantly changing tax environment.
As HMRC continues to move towards the digitalisation of tax compliance and reporting, there is increased internal focus on investigating and utilising technological solutions in order to ensure we remain compliant, but also drive efficiencies in process and ultimately reduce tax risk.
Where tax risks are identified, the UK Tax Team takes steps to mitigate those risks at the earliest possible opportunity with support from the Global Tax Team, local finance teams and external advisors as appropriate.
We seek to pay the right amount of tax, on time, and meet all tax filing obligations, on time.
Our attitude towards tax planning (so far as affecting UK taxation)
We conduct commercial activities and related tax matters in accordance with the relevant tax law and prevailing practice.
As UK companies within a NASDAQ listed group, the UK Group is committed to managing UK tax affairs so as to maximise shareholder value and minimise reputational risk. We do not seek to obtain tax advantages by engaging aggressive tax planning which would present an exposure to negative publicity and potentially have an impact on our global reputation.
The Global Tax Team (of which the UK Tax Team is part) works closely with the wider business to ensure that the tax implications of any proposed business transactions are considered as part of any internal transaction approval process.
All tax risk factors are taken into consideration in order to determine the most tax efficient way of structuring a given commercial transaction.
The level of risk in relation to UK taxation that we are prepared to accept
Ensuring that we are compliant with UK tax legislation is fundamental to managing our UK tax risk profile with HMRC and the public.
Tax risk is always considered as part of any commercial decision making process, whether that be in terms of tax cost to the business, risks arising due to legislative changes, risks in relation to potential non-compliance and associated reputational risk.
Business transactions are considered by the Global Tax Team on a case by case basis in conjunction with commercial, financial, treasury and legal teams to ensure that any level of risk is acceptable to the business as a whole.
We consult with external advisors on a regular basis to ensure that we minimize and manage tax risk. Where possible we will approach HMRC to obtain certainty on the UK tax implications of any commercial decisions.
We operate with integrity, honesty and fairness with all our stakeholders including HMRC
We maintain the highest standards of honesty and ethical conduct throughout our business. We have an open, honest and efficient collaborative working relationship with HMRC, with a commitment to transparency in all UK taxation matters.
Where UK tax law is unclear in definition or purpose, we seek to engage in a timely dialogue with HMRC and external tax advisors to gain clarity on the interpretation of that tax law.
HMRC consider the UK Group a mid-sized business. As such, we have not been allocated a customer relationship manager. Where appropriate we undertake to meet face to face with HMRC to openly discuss any significant UK tax issues in the business. Otherwise we are committed to regular contact with HMRC through other relevant communication channels.