This Tax Strategy is applicable to the business activities of Addleshaw Goddard LLP and its affiliated undertakings (‘Addleshaw Goddard’) as UK taxation relates to them.
This document meets the requirement for Addleshaw Goddard to publish its Tax Strategy as required by section 161 and paragraph 16(2) of Schedule 19 of Finance Act 2016. It is effective for the accounting period ended 30 April 2023.
The Tax Strategy is reviewed periodically and has been approved by the Firm's Executive and its Board and applies to the year ended 30 April 2023.
1. Our focus on Tax Compliance and Reporting
Addleshaw Goddard is committed to fulfilling its legal obligations to pay all taxes required by laws and regulations in each of the jurisdictions in which it operates, including the UK.
This includes ensuring that we take appropriate professional advice, apply diligent professional care and judgment in making decisions relating to the tax treatment of business activities and tax compliance and maintain sufficient evidence to support all judgments made.
2. Our approach to tax governance and tax risk management in relation to UK taxation
Accountability for Addleshaw Goddard’s UK tax operations ultimately lies with the Firm's Executive under the supervision of its Board. This includes providing guidance and oversight over how tax risk is managed across Addleshaw Goddard. As part of this governance framework, there are procedures as to how tax risk is managed and escalated where necessary to the Firm's Executive and its Board.
Day-to-day responsibility and management of Addleshaw Goddard’s tax operations is delegated to the Head of Partnership Tax who is supported by a team of appropriately qualified individuals who work alongside our external tax advisers to meet the Firm's UK tax obligations. The Head of Partnership Tax reports to the Firm's Chief Financial Officer (CFO) who forms part of the Firm's Executive and sits on its Board.
2.2. Tax risk management
As for all businesses, tax risks exist where there is uncertainty (for example, due to the interpretation of tax law, or the practical implementation of tax law in an operational or tax compliance situation).
Addleshaw Goddard has developed a tax risk framework to ensure the identification, prioritisation and monitoring of tax risk across the business, as well as the escalation of tax matters. Where matters are considered to be significant or higher risk, whether because of the value or because an element of judgment is required or where there could be a potential adverse financial or reputational outcome, these are considered by the Firm's Executive and, where there is significant uncertainty or complexity in relation to tax risk, we seek input from external advisers and, where possible, seek clarity from HMRC.
The CFO is also responsible for ensuring that tax risk policies and procedures are adhered to across the business. In this regard, Addleshaw Goddard has a system of internal controls over tax compliance processes that include segregation of duties, initial and second levels of review and, where appropriate, reconciliation checks to underlying systems to provide additional controls over the accuracy of the tax figures used.
3. Our approach towards tax planning in relation to UK taxation
In delivering our business objectives, we take account of tax laws in every territory in which we operate. However, Addleshaw Goddard seeks to create value for our partners and as a result we may respond to tax incentives and reliefs, where appropriate, in a way that is consistent with HMRC and government policy and the commercial objectives of the business. We will not seek to engage in any transactions that are artificial or contrived.
As appropriate, Addleshaw Goddard will seek external professional tax advice to ensure that any such incentives and reliefs are applied legitimately, particularly if the outcome of a transaction (or its tax treatment) is uncertain or complex.
4. Our dealings with HMRC
Addleshaw Goddard seeks to maintain an open and transparent relationship with HMRC. Wherever possible, and where interpretation is uncertain, we will seek to achieve early agreement on issues in order to gain certainty and, should any differences of opinion arise regarding the interpretation of the law, we will seek to resolve these by working, where possible, collaboratively with HMRC.