Confidential

BSI GROUP - TAX STRATEGY
BSI’s public purpose is summarised as “inspiring trust for a resilient world”. This guides ourapproach to the conduct of BSI’s tax affairs in the UK and globally. We seek to inspire thetrust of tax administrations that we will contribute our fair share of taxes commensuratewith the value we create and the resources we consume. The tax that BSI pays is an
important part of our wider economic and social impact which contributes to thedevelopment of the countries in which we operate.
Governance
The Group’s tax strategy has been approved and adopted by the BSI Board. Responsibilityfor implementation of the tax strategy, the supporting governance framework andmanagement of tax risk is delegated by the Board to the Chief Financial Officer (“CFO”).
The supporting tax governance framework, which aligns to the wider risk and control
framework of the business is structured having regard to the OECD report “Co-operative Tax
Compliance: Building Better Tax Control Frameworks” which may be regarded as a bestpractice standard in this context.
Independent monitoring and reporting of tax risks and controls is supported by the Internal
Audit and Risk function, and key risks and issues related to tax are escalated to andreviewed by the Audit and Risk Committee of the Board on an annual basis.
Management of tax risk
Integrity and good conduct are central to our culture and approach to risk management.
BSI is a multi-national UK headquartered organisation, with operations in [31] countries, andis exposed to the following principal tax risks:•Tax compliance and reporting risks associated with compliance failures such assubmission of late or inaccurate returns, the failure to submit claims and elections ontime or where finance or operational systems and processes fail and do not support
tax compliance and reporting requirements.

•Transactional risks arising from transactions being carried out or actions being
taken without appropriate consideration of the potential tax consequences or advice
taken not being implemented correctly.

•Reputational risks arising from the impact that the crystallisation of tax risks may
have on our relationships with our stakeholders, clients, tax authorities and thegeneral public.

Tax risk is managed as is other financial and operational risk across the Group. Bothfinance and business colleagues participate in identifying, managing and monitoring tax
risks within the business.

ConfidentialRelationship with Tax Administrations
We engage collaboratively and transparently with HMRC and other tax administrations infiling returns, resolving queries and dealing with uncertain tax positions. The nature andcomplexity of domestic and international tax laws are such that there are occasions when ataxpayer may, quite legitimately, maintain a different interpretation of law to that asserted
by a tax administration and a dispute may arise. In such circumstances we will defend anhonestly and reasonably held tax position to the extent it makes economic sense to do so.

Attitude to tax risk
BSI’s public purpose requires that it sets an example and our tolerance of tax risk is low.
This does not, however, prevent BSI pursuing tax planning initiatives that further its
commercial aims in support of its public purpose within appropriate limits.
Attitude to tax planning
Where it is appropriate to do so, we structure our tax affairs efficiently. Tax planning will
only be considered in the context of the commercial needs of BSI and in compliance withapplicable laws. We will not engage in arrangements that are contrived or artificial where
the sole or main purpose is the avoidance of tax.
We ensure that financial statements and tax returns include sufficient detail to enable tax
administrations to form an accurate view of the affairs of the company(ies) filing thefinancial statements and returns affected by any planning initiatives. We also ensure that
there is an adequate internal supporting audit trail and sign-off in accordance with BSI
governance requirements.
Transparency•

We support initiatives to improve international transparency on taxation matters,
including recognition and application of the OECD BEPs Actions particularly in respect ofarm’s length transfer pricing arrangements.

•We commit to being open and transparent about decision-making, governance and taxplanning.

•We do not tolerate UK tax evasion, nor do we tolerate the facilitation of UK tax evasion
by any person(s) acting on the Group’s behalf.

BSI has published its tax strategy in compliance with paragraph 16(2) of Schedule 19 of theFinance Act 2016
Dated: 15 June 2023