Booz Allen Hamilton UK Tax Strategy
Booz Allen Hamilton UK Tax Strategy
Booz Allen’s UK tax strategy (the “Strategy”) is applicable to Booz Allen Hamilton International (UK) Ltd. (“Booz Allen UK”) and the UK branch of Booz Allen Hamilton International, Inc. (“UK Branch”, hereinafter collectively referred to as “Booz Allen” or the “Group”). The publication of this Strategy fulfills its compliance duty under Para 19 (2), Schedule 19, Finance Act 2016 for the financial year ending March 31, 2021. Booz Allen UK’s directors and the UK Branch’s management have participated in the development of, review and approval, of this Strategy, and will annually review and approve the Strategy. Booz Allen’s tax vision is to manage tax risks to remain compliant and allow the Group to achieve its objectives. The Strategy set out below stems from our purpose and values and is guided by our Code of Business Ethics and Conduct.
How Booz Allen Manages UK Tax Risks
Booz Allen has adopted a coherent and cohesive internal control framework to identify and reduce its UK tax risk inherent in the size, complexity, and extent of its evolving UK business. The internal control framework includes the following elements:
- A global tax steering committee that reviews and evaluates the global tax strategies for the UK on at least a quarterly basis, which is consulted for any identified material UK tax risk. The steering committee includes external tax experts and the Booz Allen global head of tax. The global head of tax, with the assistance of external tax experts, has direct responsibility for overseeing Group tax matters in consultation with the management and/or board of directors of the relevant entities. The steering committee also includes members of Booz Allen’s executive finance leadership responsible for monitoring risk, including tax risk, at the C-suite level.
- A quarterly collaboration among Booz Allen’s international operations, tax, and legal teams to ensure a regular, recurring and proactive dialogue between business strategy and tax requirements. This real-time collaboration enables Booz Allen to proactively identify potential tax risks and to incorporate risk-mitigation strategies.
- Use of digital tools to establish a communications and monitoring framework for issues and decisions.
- Attention to the quality and training of Booz Allen’s internal and external accounting and tax teams to ensure the requisite knowledge and experience adhere to the control framework.
- A tax and steering committee review of any material tax-sensitive changes in business operations.
- Engagement with outside experts as needed to monitor and assist with interpretation of new laws, regulations and interpretations to ensure compliance and identify tax risks that may arise from any such new guidance.
Governance, Tax Planning, and Risk
In alignment with our purpose and values and Code of Business Ethics and Conduct, we aim to undertake all business activities with ethical values and in compliance with laws and regulations. Our tax-planning approach focuses on the effective management of the Group’s tax position in line with our broader objectives to deliver long-term economic value to our stakeholders, including the local and global communities. To manage a sustainable business and be competitive, we necessarily consider the business objectives and tax impact in structuring our business transactions. Our goal is to accurately comply with our tax obligations globally. All transactions within the Group follow the arm’s length principles in line with our transfer-pricing policies.
Our approach to UK tax risk is to be conservative and proactive in risk assessment. We strive to be compliant and timely in our tax-filing obligations. We pursue tax credits when appropriate and may elect appropriate reliefs intended to lower the cost of business operations. We expect and require our employees to act ethically and in compliance with all applicable laws and regulations. Where tax treatment may be significant, complex, or uncertain, we may obtain professional opinions from external tax advisors to ensure we accurately report.
Approach Toward Dealings with HMRC
Our goal is to work collaboratively with Her Majesty's Revenue and Customs (HMRC) and adhere to mandatory disclosure requirements. We will cooperate with inquiries from HMRC in a transparent, professional, and timely manner.