This publication satisfies Warner Music UK Group’s (the “Group”) requirements to publish its tax strategy under Schedule 19 of the UK Finance Act 2016 for the year ending 30 September 2022.
This tax strategy applies to all members1 of the Group owned by Warner Music Group Corp. (“WMG”), a US corporation.
This publication sets out the Group’s approach to tax. In particular, it summarizes how the Group manages risks in relation to tax affairs, its attitude towards tax planning, and its approach towards dealings with HM Revenue & Customs (“HMRC”). The Group is committed to:
- Following all applicable laws and regulations relating to its tax activities.
- Maintaining an open and honest relationship with the tax authorities based on collaboration and integrity.
- Applying diligence and care in our management of the processes and procedures by which all tax related activities are undertaken, and ensuring that our tax governance is appropriate.
Risk Management and Governance Arrangements
The Group is committed to full compliance with all tax laws. WMG’s Senior Vice President Global Tax, who reports to WMG’s Chief Financial Officer, has overall responsibility for overseeing tax strategy and management of tax risk. He leads a team of in-house tax professionals, including the Vice President International Tax based in the UK, who are responsible for the day-to-day management of the Group’s tax affairs.
The management of the Group’s tax affairs is a complex process across many functional areas of the business; and as such, there will inevitably be risks (“Tax Risks”) which may result in the incorrect application of tax rules or calculation of tax returns. The elimination of tax risks entirely is impossible; therefore, the Group’s attitude towards the level of control required over the processes designed to reduce these Tax Risks is driven by the likelihood of occurrence and scale of impact of each Tax Risk.
The Group ensures that the following are considered when reviewing the Tax Risks associated with a specific decision or action:
- The legal and fiduciary duties of directors, officers and employees.
- The requirements of any related internal policies or procedures.
Approach towards Dealings with HMRC
The Group is committed to the principles of openness and transparency in its approach to dealing with HMRC. In particular, the Group is committed to:
- Make fair, accurate and timely disclosure in correspondence and returns, and respond to queries and information requests in a timely manner.
- Seek to resolve issues with HMRC in a timely manner, and where disagreements arise, work with HMRC to resolve issues by agreement, where possible.
- Be open and transparent about decision-making, governance and tax planning.
- Structure transactions to give a tax result which is consistent with the economic consequences intended by Parliament.
- Interpret the relevant laws in a reasonable way, and ensure transactions are structured consistently.
- Ensure all interactions with HMRC are conducted in an open, collaborative and professional manner.
Note 1: This tax strategy applies to all Group entities controlled directly or indirectly by Warner Music Group Corp. For the purposes of UK Finance Act 2016, this strategy applies to all UK sub-groups and all qualifying companies.
Updated as of 27 September 2022.