EYGS UK taxstrategy
June 2022

EY values and our commitment to building a betterworking world drive our tax strategy
ScopeThis tax strategy applies to EYGS LLP and all
its wholly owned UK corporate subsidiaries,
collectively “EYGS,” for the financial year
ending 1 July 2022. A list of EYGS LLP’s
UK subsidiaries is shown on page 3 ofthis strategy.
The principal activity of EYGS is the provision of services toeach of the Member Firms of the EY network (‘EY MemberFirms’). This is to further the international alignment,enhancement, cooperation and cohesion among the EY
Member Firms. EYGS provides services to EY Member Firms
as a mutual trader. It 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 incomeand gains.
This document relates only to the tax strategy of EYGS —not EY Member Firms, who are responsible for their owntax strategies.
EYGS LLP publishes this document in satisfaction ofits duties under Paragraphs 16 (2), 19 (2) and 25 (1)Schedule 19 of Finance Act 2016.

A better working world
The EY network’s purpose, building a better working world,is shared by EYGS, and EYGS supports EY Member Firms
to pursue the EY network’s strategy as a distinctive global
professional services brand. EYGS’s support in building abetter working world aids the EY network to build trust andconfidence in the capital markets whilst solving some of theworld’s toughest challenges to leave a lasting legacy for EY
people, clients and communities.
The EY network is constantly learning through its own
purpose journey, building a better working world, and has
applied the long-term value framework to help define andEYGS UK tax strategy June 2022

measure its ambition, building on the EY network’s work withthe Embankment Project for Inclusive Capitalism (EPIC) andparticipation in the development of the Stakeholder Capitalism
Metrics in partnership with the World Economic Forum
International Business Council.
The EY network’s performance against the Stakeholder
Capitalism Metrics in respect of FY21 can be found in its FY21
EY Value Realized report, which can be found here.
EYGS helps creates long-term value by focusing on a broad setof stakeholders including employees, consumers, suppliers,communities and government, with the EY network’s purposein mind, to sustain the EYGS’s business for the long term.
For EYGS, one group of key stakeholders within ourcommunities are the tax authorities that we interact withas a taxpayer. Principally for EYGS, this is HMRC in the UKwith 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 taxpayment 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 doAs the business environment adapts to the wide reachingchanges of the COVID-19 pandemic, maintaining the discipline
and rigour of our tested tax principles allows us to adapt andcomply with the changing tax environment.

1

The EY network’s reputation is built by EY 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 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 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 businesses from acommercial perspective to identify andappropriately manage any tax risks
arising from them.

ConductCompliant

Effective riskmanagementCommercial

We seek to align our tax affairs with
their commercial and economic
substance in compliance with the tax
laws of the jurisdictions in which weoperate.
We claim tax reliefs as aligned to thetax laws under which 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. In seeking to
be responsible taxpayers, we seek
advice from the appropriate internaland external tax professionals tomanage our risks and compliance
positions so we can pay 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 to
the Board of EYGS LLP.
Our internal tax team keeps up
to date with legislative changes
through training and continuing
professional development.

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 signifiant transactions andbusiness changes and disclose and discuss areas ofsignificant uncertainty in how the legislation applies.

EYGS UK tax strategy June 2022

2

List of UK subsidiaries• EY Global Services Limited• Ernst & Young (EMEIA) ServicesLimited• Ernst & Young (Asia-Pacific)
Services Limited• Tao Leadership Limited(acquired 19 November 2021)

EYGS UK tax strategy June 2022

3

EY | Building a better working world
EY exists to build a better working world, helping tocreatelong-term value for clients, people and society andbuild trust in the capital markets.
Enabled by data and technology, diverse EY teams in over
150 countries provide trust through assurance and help
clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax andtransactions, EY teams ask better questions to find new
answers for the complex issues facing our world today.
EY refers to the global organization, and may refer to one or more, of themember firms of Ernst & Young Global Limited, each of which is a separate
legal entity. Ernst & Young Global Limited, a UK company limited byguarantee, does not provide services to clients. Information about how EY
collects and uses personal data and a description of the rights individuals
have under data protection legislation are available via ey.com/privacy. EY
member firms do not practice law where prohibited by local laws. For more
information about our organization, please visit ey.com.
© 2022 EYGM Limited.
All Rights Reserved.
EYG no. 005148-22Gbl
UKC-022872.indd (UK) 06/22.
Artwork by Creative UK.
ED None
In line with EY’s commitment to minimise its impact on the environment, this document
has been printed on paper with a high recycled content.

This material has been prepared for general informational purposes only
and is not intended to be relied upon as accounting, tax, legal or otherprofessional advice. Please refer to youradvisors for specific advice.

ey.com