The Group’s tax strategy, approved by the Board, is to sustainably minimise tax cost whilst complying with the law. In doing so, it ensures it acts in accordance with Balfour Beatty’s ethics, values and compliance programme.
Balfour Beatty has clear tax policies, procedures and controls in place which are overseen by the Chief Financial Officer and monitored and reviewed by internal tax specialists.
The Group manages tax affairs in a proactive manner that seeks to maximise shareholder value. However, it does not enter into artificial arrangements that lack commercial purpose in order to secure a tax advantage. If a position is uncertain the Group may obtain third-party advice in order to gain clarity or support for a particular stance or approach. The aim is to ensure full compliance with all statutory obligations and as a consequence attempt to minimise risk wherever possible.
This approach is supported by an open, honest and positive working relationship with the tax authorities. Should any dispute arise with regard to the interpretation and application of tax law, the Group is committed to addressing the matter promptly and resolving it in an open and constructive manner.
The Group makes a major contribution to the tax revenues of governments in the numerous territories in which it operates. For example, the Group’s tax contribution extends significantly beyond corporation tax and the collection of substantial amounts of income tax and includes the payment of significant employer social security contributions.
The strategy is compliant with the UK tax strategy publication requirement set out in Part 2 of Schedule 19 FA 2016.
For further information, read page 37 of the 2017 Annual Report.