EYGS UK taxstrategy
May 2019

EY’s values and our commitment to building abetter working world drive our tax strategy
ScopeA better working world

This tax strategy applies to EYGS LLP and all
its wholly owned UK corporate subsidiaries,
collectively “EYGS,” for the financial years
ending 29 June 2018 and 28 June 2019. A listof EYGS LLP’s UK subsidiaries is shown on theback page of this strategy.

EYGS’s purpose, Building a better working world, isfundamental to its strategy as a distinctive global professionalservices brand. It helps build trust and confidence in thecapital markets while solving some of the world’s toughest
challenges to leave a lasting legacy for our people, for ourclients and for our communities.

The principal activity of EYGS is the provision of services
to each of the Member Firms of the EY network (‘MemberFirms’). This is to further the international alignment,enhancement, cooperation and cohesion among the MemberFirms. EYGS only provides services to Member Firms as amutual trader and does not provide services to externalclients. In line with its mutual purpose, EYGS earns income
sufficient only to cover its costs and make a minimal profit.
As a limited liability partnership, under UK law, EYGS LLP
does not pay tax on its own behalf; rather, its members areindividually assessed tax on their share of taxable profits.
Taxable profits for EYGS LLP are non-mutual income
and gains including the profits from any trade with nonmembers.
This document relates only to the tax strategy of EYGS —not Member Firms, who are responsible for their own taxstrategies.
EYGS LLP publishes this document in satisfaction ofits duties under Paragraphs 16 (2), 19 (2) and 25 (1)Schedule 19 of Finance Act 2016.

EYGS UK tax strategy May 2019

For EYGS, one group of key stakeholders within ourcommunities are the tax authorities that we interact with
globally as a taxpayer. Principally for EYGS, this is HMRC in theUK with whom we seek to maintain a positive and transparent
relationship. We welcome the opportunity to publicly outline
our tax strategy as a business.

Our tax principles
Our objective is to pay the right amount of tax at the righttime to meet our statutory obligations. We seek clarity andcertainty on tax matters wherever feasible. When dealing withthe tax affairs of EYGS, we focus on:•

Being on time and in compliance with our tax filing and tax
payment obligations•

Effectively managing our risks•

Working closely with HMRC in a cooperative manner on areal time basis•

Maintaining a tax strategy which is fully supported andowned by the Board of EYGS LLP•

Aligning our tax affairs to commercial activity of theservices we provide•

Demonstrating the EY values at the heart of everything we do1

Our reputation is built by our people acting
according to the EY values
Governance and conduct
Our tax strategy is approved and owned by the Board of EYGS LLP.
Our internal tax team has a clear accountability up to the Board for themanagement of tax arising from our business operations.
Our internal tax team has a clear mandate from the Board to act in a wayaligned to EY’s values, which define who we are:•People who demonstrate integrity, respect and teaming.

•People with energy, enthusiasm and the courage to lead.

•People who build relationships based on doing the right thing.

The Board’s mandate is for EYGS LLP to behave in accordance with the low risk
characteristics as set out in HMRC’s Business Risk Review process.

Commercial attitude totax planning
We undertake transactions which
are commercially driven and do not
put in place artificial or contrived
arrangements that could give rise to
reputational damage for EYGS.
We structure our business operations
from a commercial perspective toidentify and appropriately manage any
tax risks arising from them.

Conduct

CompliantEffective risk
management
Commercial

Our tax affairs are aligned inaccordance with their commercial andeconomic substance in compliancewith the tax laws of the jurisdictions inwhich we operate.

Cooperative

Compliance andeffective risk
management
Compliance is at the heart of what
we do, and we focus on staying
compliant with our tax filing and tax
payment obligations.
EYGS’s business is of a significant
scale, and we deal with a large
volume of complexity in the tax
systems in the jurisdictions inwhich we operate. As responsible
taxpayers, we seek advice from theappropriate internal and external
tax specialists to manage our risks
and compliance positions so we canpay the right tax at the right time.
We have clearly documented
processes and controls relating
to the management of our tax
compliance processes.
Our internal tax team has clear roles
defined by their areas of process
and tax experience. They report to a
Head of Tax who, in turn, reports tothe CFO and the Board.
Our internal tax team keeps up
to date with legislative changes
through training and continuing
professional development.

We claim tax reliefs as aligned to thetax laws under which we operate.

Cooperative approach with HMRC
EYGS maintains an open and honest dialogue with HMRC,
and we do so on a timely basis.

We communicate our positions based on full disclosure of
the relevant facts and legislative position.

We meet and correspond with HMRC regularly throughout
the year and keep abreast of tax developments.

Where we have uncertainty in how the underlying legislation
applies, we seek to resolve the matter through an open andhonest dialogue.

We keep HMRC informed of significant transactions
and business changes and disclose and discuss areas ofsignificant uncertainty in how the legislation applies.

EYGS UK tax strategy May 20192

List of UK subsidiaries• EY Global Services Limited• Ernst & Young (EMEIA) Services Limited• Ernst & Young (Asia-Pacific)
Services Limited

EYGS UK tax strategy May 20193

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trustand confidence in the capital markets and in economies the world
over. We develop outstanding leaders who team to deliver on ourpromises to all of our stakeholders. In so doing, we play a critical rolein building a better working world for our people, for our clients and forour communities.
EY refers to the global organization, and may refer to one or more, ofthe member firms of Ernst & Young Global Limited, each of which isa separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
© 2019 EYGM Limited.
All Rights Reserved.
EYG No. 002127-19Gbl
EY-000088369.indd (UK) 05/19.
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In line with EY’s commitment to minimize its impact on the environment, this document
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This material has been prepared for general informational purposes only and is not intended tobe relied upon as accounting, tax or other professional advice. Please refer to your advisors forspecific advice.

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