This tax policy is published on February 26, 2024, and applies to the UK subsidiaries of Stagwell Inc, listed in Appendix A. The UK affiliates regard this policy as complying with their duty under paragraphs 19(2) and 22(2) of Schedule 19 Finance Act 2016 to publish a tax strategy in 2023. We have operated within the principles detailed below for many years.
1. Our approach to risk management:
The UK tax strategy conforms with the Stagwell’s Code of Conduct and is owned and approved by the Stagwell management and overseen by the Stagwell Board of Directors and Audit Committee. The day-to-day implementation of the tax strategy is delegated to the Senior Vice President Global Tax, who is supported by the group tax and finance teams.
We seek to identify, evaluate, monitor, and manage tax risks to ensure that we comply in full with our legal obligations. Additional assistance from external advisers is sought when required. We are committed to compliance with tax laws and practices. We continuously monitor changes to tax legislation, ensuring that we take advice where appropriate from professional advisers.
Given the nature of our business and geographic footprint, it is inevitable that risks may arise with respect to the application of tax laws that are complex and uncertain at times. Whilst we do not have prescriptive levels of tax risk, we routinely seek professional advice where the application of tax law to a material transaction or a given situation is reasonably unclear or uncertain, or where specialist knowledge is required.
2. Tax planning:
Stagwell believes that it should pay the amounts of tax legally due in the UK and will not engage in transactions whose main purpose is to avoid UK taxation or to defeat the stated purpose of the legislation.
We seek to comply with all relevant laws, including the OECD arm’s length standard in relation to transfer pricing. In supporting the commercial and investment needs of the business, we take into account tax laws (as well as all other relevant matters) in all countries in which we operate. Factors that are considered include potential incentives and reliefs. Where legally possible, we will seek to take positive steps to eliminate the risk of double taxation. Any such action is done in a way that is aligned with the company’s commercial objectives, meets our legal obligations, and takes into account the potential impact on our reputation.
3. Our relationship with HMRC:
Stagwell strives to comply with all relevant compliance and disclosure requirements in an open and transparent manner ensuring that all information provided to HMRC is clearly presented. In its dealings with HMRC, Stagwell is committed to acting in a collaborative, courteous and timely manner. Stagwell’s aim is to strive for early agreement on disputed matters, achieve certainty wherever possible, and thus minimize tax risk. Stagwell provides HMRC with timely responses to enquiries into its UK tax affairs and seeks to bring any matters under discussion with HMRC to conclusion as efficiently as possible.
Appendix A – List of UK subsidiaries of Stagwell Inc.
1. 7thfl, Ltd
2. A-Alliance UK Ltd (f/k/a Hunter PR UK Limited)
3. Allison + Partners UK Limited
4. Anomaly London LLP
5. Anomaly UK Limited
6. Code and Theory London Limited
7. Crispin Porter & Bugusky Ltd
8. Doner Limited
9. eSubstance Limited
10. Forward 3D Group Limited
11. Forward 3D Holdings Limited
12. Forward 3D Limited UK
13. Goodstuff Holdings Limited
14. Hunter Public Relations UK Limited
15. Ink Publishing Holdings Limited
16. Kwitten & Company Limited
17. KWT Global Ltd
18. Lissted Limited
19. Locaria Ltd
20. Maru Group Limited
21. Maru/Blue UK Limited
22. Maru/EDR Limited
23. Maru/Usurv Limited
24. MDC Partners UK Holdings Limited
25. Northstar Research Partners (UK) Ltd
26. OneChocolate Communications Limited
27. Stagwell Media (NRG) UK Limited
28. Studio Cypher Limited
29. Syngro Limited
30. Travel Content Limited