The Group is committed to complying with global tax regulations in a responsible manner with due regard to governments and shareholders, and to engage in open and constructive relationships with tax authorities in the territories in which it operates. The Group’s tax planning is consistent with this responsible approach, and it will not enter into arrangements for the purpose of achieving a tax advantage. The Group tax strategy is implemented through the Group’s tax policy which directs and aligns the activities of the various functions within the Group in order to achieve the strategy’s objectives.
Tax governance framework
The Chief Financial Officer is responsible for the Group’s tax policy which is implemented with the assistance of the finance leadership team. This is reviewed on an ongoing basis as part of the regular financial planning cycle. In addition, the Group’s tax status is reported regularly to the Group Risk and Audit Committees. The Audit Committee is responsible for monitoring all significant tax matters including the Group’s tax policy. Audit Committee meetings are attended by a number of Group officers and employees including the Chief Financial Officer, the Senior Vice President – Group Tax, the Company Secretary, the General Counsel, and the Chief People and Corporate Affairs Officer, who oversees all corporate responsibility matters.
Total tax contribution
The group makes a significant economic contribution to the countries where it operates through taxation, either borne by the group or collected on behalf of and paid to the relevant tax authorities. In FY16, the total taxes borne and collected by the group amounted to £385.3m. In the UK, where the group is headquartered and has significant operations, Burberry paid business taxes of £84.4m and collected a further £27.8m of taxes on behalf of the UK Exchequer. The composition of both global and UK total tax contributions are shown in the charts below: