The approach we take to our tax affairs and management of tax risk can be found in our Tax Strategy here:
Read our Tax Strategy in detail (PDF 208KB)
We adopt the following approach in relation to our tax responsibilities:
- We are committed to the responsible management of our tax affairs in line with our purpose-led strategy.
- We take a compliant approach and seek to pay the right amount of tax in the jurisdictions in which we operate, complete and submit accurate tax returns and pay tax due within the timeframes set by legislation.
- We do not establish businesses in any jurisdiction with the sole or main purpose of gaining a tax advantage or to divert profits from higher tax rate jurisdictions and we operate policies to ensure that there is no artificial diversion of profits between high and low tax countries.
- We require all intra-group transactions to be priced on an arm’s length basis in line with internationally accepted transfer pricing standards and local tax laws.
- We are committed to improving tax transparency and comply with global initiatives in this regard.
- We are transparent in our interaction with tax authorities. In the UK we have signed up to the UK Government’s Code of Practice on Taxation for Banks (‘the Code of Practice’) which commits us to obeying the spirit, as well as the letter of the law, and to maintaining an honest and open dialogue with HM Revenue & Customs. All parts of the Bank worldwide are expected to follow the Code of Practice.
- We have a low appetite for tax risk and aim to minimise the level of tax risk arising from our operations as far as is reasonably possible.
- Our tax specialists review new products, transactions or business proposals through the Group’s risk governed sign-off processes. Our tax specialists aim to ensure that we comply with tax law and practice, that transactions and business proposals are within tax risk appetite, and that we consult with tax authorities and/or external advisors where necessary.
- We aim to operate in a tax efficient manner by claiming tax exemptions, reliefs, and incentives in line with the relevant legislation and its intended policy objectives and which are consistent with the operational objectives and economic substance of our business.
- We will only undertake tax planning which supports genuine economic and commercial activity, is based on reasonable interpretations of applicable law and is compliant with the Code of Practice. Any tax planning proposed is subject to a robust review and approval process.
- We do not promote products to our customers which we consider to be inconsistent with the spirit of the law.
- Our Financial Crime Statement states our lack of tolerance for any activity relating to the criminal offence of tax evasion and we are committed to preventing the facilitation of tax evasion.
Read our NatWest Group Financial Crime Statement (PDF 404KB)