Wayne Dickinson Senior Tax Manager

Agenda Practical issues around year end reporting and calculation processes in Industry The importance of the effective tax rate to stakeholders The impact of the public debate on tax reporting and disclosures

Projects ReportingCompliance

Year End Process Review/Follow Up Year End Process Information inCalculation ProcessDelivery Forecast Business KnowledgeTax Profile

Year End Process Forecast Business KnowledgeTax Profile

Year End Process Identify stakeholders Set expectations and stick to them Preparation is key Year End Process Information in

Year End Process Preparation – Working papers – Accounting records – Tax issues identified – Tax team briefed Excel v software? Time for calculation Controls/logic check Overseas operations Year End Process Calculation/Process

Year End Process Preparation Challenges: forecast assumptions wrong (!) Provisions/risks Delivery

Year End Process Auditor management Stakeholder management Communication Summary

Year End Process Stakeholders Finalise workings Journal push down Review/Follow Up

Stakeholders CFO CEO Auditors Analysts Banks Public Press Lobbyists MP’s PAC Employees Inv Rel PR

TAX EVASION Efforts to evade taxes by illegal means Commonly found through false declarations to tax authorities Legal use of the tax regime to one’s own advantage Reduce tax liability within the law TAX AVOIDANCE -v-

“People work hard, they pay their taxes, they save up to go to one of his shows. They buy their tickets. He is taking the money from those tickets and he, as far as I can see, is putting all of that into some very dodgy tax avoiding schemes” David Cameron

Public Accounts Committee

Retailers in the Spotlight

Lobbying

Other Headlines Tax, Lies and Videotape BBC One 16 th Sept 2013 Vodafone: No UK tax to pay on £84bn sale Robert Peston – BBC news website, 1 st Sept 2013 Mobile group Three taps large tax credit Daniel Thomas and Vanessa Houlder – FT, 18 th Sept 2013 Beanie Babies’ owner pleads guilty to tax evasion Kara Scannell, BBC news website, 19 th Sept 2013 “The poll suggested public opinion continues to strengthen against the tax strategies of multinationals. Eighty-four per cent of those polled expressed anger at multinationals avoiding tax, up from 80 per cent in an earlier ComRes poll for Christian Aid in February.” Vanessa Houlder, FT, 25 th August 2013 A director’s duty..... Is not a duty to avoid tax” Farrer & Co Opinion, 7 th June 2013

Other Activity Base Erosion & Profit Shifting – European focus driven by political and public scrutiny during the recession – Consensus that to act alone could damage competitiveness has led to support for OECD’s coordination role – Public consultation 12/13 November: common template for country by country reporting of high level information to tax authorities CBI statement of principles setting out good practice in disclosure UK GAAR

Market Place Reactions Overseas HavensEnhanced Tax Disclosures on Tax Contributions Financing ArrangementsCorporate Responsibility

Publication of Tax Strategy and Tax GovernanceDisclosure of Tax ContributionEnhanced UK Tax ReconciliationCountry by Country Reporting 21

Total Taxes Paid 22

Publication of Tax Strategy and Tax GovernanceDisclosure of Tax ContributionEnhanced UK Tax ReconciliationCountry by Country Reporting 23

Summary Practical issues around year end reporting and calculation processes in Industry The importance of the effective tax rate to stakeholders The impact of the public debate on tax reporting and disclosures 24

Thank You ! 25 Any Questions?