UK Tax Strategy
Time Warner’s approach to tax seeks to align the long term interests of all our stakeholders, including shareholders, employees and governments, as well as drive consistent tax behaviours across the Group. We seek to create value on a sustainable basis by ensuring commercial activities are organised in a tax efficient manner and comply with all tax law, regulations and disclosure requirements in the territories in which we operate.
Our UK tax strategy has been approved by the Board of Directors of Time Warner Holdings Limited and applies to all entities within the UK that are part of the Time Warner group.
Attitude toward tax planning
All tax planning undertaken supports the company’s commercial objectives and its ability to invest, taking into account the core values of the company and any potential impact on our reputation. Our appetite for tax risk is low.
Time Warner acknowledges that many governments shape their taxation policies to attract international business with the aim of stimulating investment, job creation and skills development. Where it is aligned with our business and commercial strategy we make use of available credits and incentives to support our business activities.
Governance and management of tax risk
The Board of Directors of Time Warner Holdings Limited oversees and approves the Time Warner UK tax strategy. This is reviewed annually and subsequent amendments will be approved by the Board.
Time Warner takes the view that tax risk can be financial, reputational or operational in nature. Given the scale of our business, risks inevitably arise from time to time in relation to interpretation of tax laws. This is primarily due to the complexity of tax legislation and differing interpretations of it in the many countries in which we operate. When appropriate we seek certainty by obtaining external advice or seeking clearances with the relevant tax authorities.
To mitigate tax risk, the Time Warner tax team works with the constituent parts of the business as equal partners, providing relevant and business focussed advice and ensuring that senior management is cognisant of the tax ramifications of operational decisions.
Working with tax authorities
A key way to manage tax exposure is to be as current as possible in agreeing the final liability for the tax year with the tax authorities. To assist this, Time Warner has an open and transparent relationship with HMRC and policy makers and engages cooperatively and proactively with the tax authorities, acting with integrity and professionalism in all tax matters.
This statement is prepared in compliance with the requirements of Paragraph 19(2) Schedule 19 Finance Act 2016.