IQVIA - U.K. - Approach to Taxation - 2018
This document sets out IQVIA’s approach to taxation in accordance with UK legislation as set out in Schedule 19 Part 2 Finance Act 2016.
IQVIA shares the vision to drive healthcare forwards being committed to providing solutions that enable healthcare companies to innovate with confidence and maximize opportunities. We do this via breakthroughs in insights, technology, analytics and human intelligence that bring the advances in data science together with the possibilities of human science.
IQVIA’s fundamental values of honesty, integrity and ethical conduct form the core of everything we do and are the foundations for our approach to taxation in the UK and globally. To fulfil the new requirements under UK law, and to support transparency of our approach to taxation, this document sets out:
- Our approach to governance, risk management and compliance
- Our approach to tax planning
- Our relationship with tax authorities
- The level of tax risk we are prepared to accept
IQVIA Is committed to responsible tax management and transparency across our global operations.
Our approach to governance, risk management and compliance
We have established and maintain robust policies, systems and compliance processes to ensure the integrity of our tax filings, together with timely and accurate tax payments in the UK and all of the territories we operate within. This includes ensuring that our tax and finance professionals have the necessary training and external support to manage our tax position appropriately and carry out tax compliance with a suitable level of diligence and technical expertise.
We maintain documented tax policies and procedures in relation to key processes such as transfer pricing and these are reviewed annually to be up to date with local and international tax regulations. Business tax processes are subject to the same level of robust internal controls, Code of Conduct, internal audit, Sarbanes-Oxley 404 requirements and external audit as is the rest of the IQVIA business. Our tax function, which is part of the broader finance function, work closely with our businesses and finance teams to ensure employees adhere to these policies around the world.
Our tax function is led by our global VP Tax, reporting to the CFO of IQVIA, and together they lead the setting and maintaining of our tax policies and approach to taxation. Our approach to taxation is reviewed periodically in light of changes to the general business environment, our business operations and tax laws and regulations. The CFO and VP Tax report regularly to the Audit Committee of the Board of Directors.
Our approach to tax planning
Substantive business transactions and commercial activity including mergers and acquisitions, divestments and inter-company transactions determine our approach to tax planning and consequent tax liabilities.
We access government sponsored tax incentives where appropriate and in line with our business activities (e.g. R&D tax credits).
We apply the principles endorsed by the Organisation for Economic Co-operation and Development (OECD) and other national tax legislation to undertake our inter-company transactions on an ‘arm’s length’ basis, supported with economic analysis and reports.
Our relationship with tax authorities
We seek to develop and maintain a professional working relationship with HMRC and taxing authorities around the world. We are open and transparent about our tax affairs and significant transactions and we work co-operatively to resolve issues in a positive and professional manner.
We ensure that there is access to relevant information demonstrating the integrity of our tax processes, returns and payments.
The level of tax risk we are prepared to accept
Our processes, policies and governance operate to ensure compliance with tax laws and regulations in the territories where we operate and are designed to identify and mitigate tax risks. Where our business and commercial activities give rise to complexity or uncertainty, we will seek external professional advice to help reduce any associated tax risk. In the event that applicable tax laws and regulations are subject to interpretation, we seek appropriate assurance from external professionals regarding the position taken and if appropriate enter into advanced pricing agreements (APA) or mutual agreement procedures (MAP) with governments.
We require all employees to comply with relevant and applicable laws and regulations and behave in accordance with IQVIA’s Code of Conduct, Doing the Right Thing.