Tax contribution report
We are committed to acting with integrity, honesty and transparency in all tax-related matters. We align our tax strategy with our company purpose and values because we recognize the societal contribution we make by paying a fair share of tax. As part of this, we adhere to corporate governance standards and provide full transparency by adequately disclosing the taxes paid – alongside the information already provided in our financial statements. This Tax contribution report presents information about our tax strategy and tax contributions in 2022.
VodafoneZiggo’s tax strategy and principles
We responsibly handle taxation at almost every aspect of our business – from the company level down to the product, from costs to profits. Taxes are collected on behalf of the company and behalf of customers, employees and service providers. As VodafoneZiggo, we believe that a responsible tax approach is essential for good corporate citizenship, taking long-term considerations into account and carefully weighing the interests of our stakeholders. Our overall objective is to comply with all applicable tax laws and regulations and effectively manage our tax position and risks through robust processes and controls. To clarify what this means in practice, VodafoneZiggo developed its tax strategy, guided by the following principles:
MANAGING OUR TAX POSITION
Tax is an integrated part of doing business. The business and its commercial needs are the priority, so VodafoneZiggo’s Tax department will act where possible in a way that supports VodafoneZiggo’s overall purpose
We strive to ensure maximum value for shareholders through tax-efficient approaches – for example, avoiding double taxation when possible. However, shareholder value and/or commercial need will in no circumstances override our compliance with applicable laws and regulations
We consider both the letter and the spirit of laws and regulations in all tax matters
COMPLIANCE AND REPORTING
We prepare and submit our tax returns, tax filings and pay our taxes promptly and in accordance with all applicable laws and regulations
Our approach to tax and our tax positions is transparent. Disclosures are made in accordance with the relevant domestic regulations, as well as applicable reporting requirements and standards
MANAGING TAX RISKS
VodafoneZiggo engages with tax authorities based on mutual trust, understanding and transparency. We provide the tax authorities with all required information within a reasonable timeframe and discuss current tax issues proactively and transparently to ensure timely and efficient compliance. We work to an Individual Monitoring Plan designed by the Dutch tax authorities, as per the policy for all of the 100 largest companies in the Netherlands
The VodafoneZiggo Tax department may engage in tax planning initiatives and make use of incentives promoted by government authorities. However, when doing so, due consideration is paid to VodafoneZiggo’s legitimate interests, reputation, brand and corporate social responsibility
We maintain adherence to our Tax Control Framework, which enables VodafoneZiggo to proactively manage its tax risks. Our Tax department is part of the Finance department, reporting to the CFO. The VodafoneZiggo Tax department includes specialists in direct and indirect taxes, payroll taxes, transfer pricing, tax compliance and reporting.
Tax is a standing item on the VodafoneZiggo Audit, Risk & Compliance Committee’s agenda. The VodafoneZiggo Tax Director updates the Audit, Risk & Compliance Committee on the material tax risks and mitigating actions taken. The VodafoneZiggo Audit, Risk & Compliance Committee oversees VodafoneZiggo’s tax position as a core part of corporate responsibility and governance
VodafoneZiggo’s Tax department is involved in the planning, implementation and documentation of business proposals, significant transactions and changes in the corporate structure. In accordance with our internal governance guidelines and Tax Control Framework, relevant tax matters are reviewed and approved by the Tax Director and, as appropriate, by members of the Senior Leadership Team
The Tax Director and Tax department ensure that senior management and relevant employees understand and adhere to VodafoneZiggo’s tax principles and to create sufficient tax awareness throughout the organisation
For details on our income tax positions and tax related contingencies, refer to notes 7 and 20 to our consolidated financial statements.
Taxes collected and paid by VodafoneZiggo in 2022 include:
Direct taxes: including corporate income tax, municipal taxes and other taxes (e.g. real estate tax)
Indirect taxes: taxes collected by and paid by VodafoneZiggo on behalf of governments, such as value added tax, wage tax, social security contributions and other taxes (e.g. energy tax)