Our economic contribution
At Schroders we are committed to conducting our tax affairs in an open and transparent way.
We are committed to complying with our tax obligations and maintaining good relationships with the tax authorities in the jurisdictions in which we operate. To do this we only engage in reasonable tax planning that is aligned with our commercial, economic and reputational goals. We keep HM Revenue & Customs informed of business activities, results and key developments and pro-actively disclose and resolve issues, risks and uncertain tax positions. We follow a similar approach with other tax authorities.
We continually assess our tax obligations against a backdrop of increasing global complexity by monitoring changes to applicable tax laws, double tax treaties, regulations and OECD guidance. We have committed to complying with the UK’s Code of Practice on Taxation for Banks and we will follow the CBI’s Seven Tax Principles for UK business.
Our tax strategy is reviewed annually by the Audit and Risk Committee. The Chief Financial Officer is responsible for management of the tax affairs of the group under the oversight of the Audit and Risk Committee.
The Taxes We Pay
Our highly diversified business has offices in 28 countries including the major financial centres of Europe, the Americas and Asia Pacific. Across these jurisdictions we make direct payments to local governments for various taxes including corporate income taxes, employer taxes and employer social security, income taxes, state and cantonal taxes, business rates, property taxes, customs duties, sales taxes and environmental taxes.
We also collect on behalf of, and pay to, local governments employee taxes, social security liabilities, withholding taxes, indirect taxes and other local taxes.
Total Tax Contribution
Our global tax footprint is driven by a number of factors including the locations of our people and our clients and corporate tax rates and rules in these locations vary significantly. We apply a consistent global approach to allocate profit to the territories in which it is earned, in line with OECD principles.
Our economic contribution includes corporate taxes paid as well as the taxes that we collect on behalf of, and pay to, tax authorities. Our total tax contribution shows our overall contribution to society in the regions in which we operate.
In 2015 our total tax contributions from global activities was £430.2 million, of which £190.1 million related to taxes borne by the Group and £240.1 million related to taxes we collected on behalf of tax authorities, primarily through our employee payroll.
As a UK headquartered business we paid over £246m of taxes to the UK government in 2015. This was 57% of our total contribution and is a reflection of our significant presence in the UK where we employ over 1,900 people.
Corporate income taxes represent about 25% of the taxes that we contribute globally. We pay a wide variety of local taxes and approximately 49% of our total economic contribution to governments relates to the employment taxes we pay and collect.
We are required by law to disclose tax information in our annual report and in respect of certain regulated entities (see below).
Capital Requirements (Country-by-Country Reporting) Regulations 2013