Tax contribution report
VodafoneZiggo is committed to acting with integrity, honesty and transparency in all tax-related matters. We recognise the societal contribution we make by paying a fair share of tax and therefore align our tax strategy with our company purpose and values. Our approach includes adhering to corporate governance standards and providing full transparency by adequately disclosing the taxes paid in addition to the information provided in our financial statements. Here we present information about our tax strategy and contributions in 2023.
Tax strategy and principles
We handle taxation responsibly all across our business – from the company level to the product level and from costs to profits. Taxes are collected on behalf of the company and behalf of customers, employees and service providers. As VodafoneZiggo, we believe that a responsible tax approach is essential for good corporate citizenship, taking long-term considerations into account and carefully weighing the interests of our stakeholders. Our overall objective is to comply with all applicable tax laws and regulations and effectively manage our tax position and risks through robust processes and controls. To clarify what this means in practice, VodafoneZiggo has developed a tax strategy, guided by the following principles described hereunder.
MANAGING OUR TAX POSITION
Tax is an integrated part of doing business. The business and its commercial needs are the priority, so VodafoneZiggo’s Tax department will act where possible in a way that supports VodafoneZiggo’s overall purpose. We strive to ensure maximum value for shareholders through tax-efficient approaches – for example, avoiding double taxation when possible. However, shareholder value and/or commercial need will in no circumstances override our compliance with applicable laws and regulations. We consider both the letter and the spirit of laws and regulations in all tax matters.
COMPLIANCE AND REPORTING
We prepare and submit our tax returns and tax filings and pay our taxes promptly and in accordance with all applicable laws and regulations. Our approach to tax and our tax positions is transparent. Disclosures are made in accordance with the relevant domestic regulations, as well as applicable reporting requirements and standards.
MANAGING TAX RISKS
VodafoneZiggo engages with tax authorities based on mutual trust, understanding and transparency. We provide the tax authorities with all required information within a reasonable timeframe and discuss current tax issues proactively and transparently to ensure timely and efficient compliance. We work to an Individual Monitoring Plan designed by the Dutch tax authorities, in line with the policy for the 100 largest companies in the Netherlands.
The VodafoneZiggo Tax department may engage in tax planning initiatives and make use of incentives promoted by government authorities. However, when doing so, due consideration is paid to VodafoneZiggo’s legitimate interests, reputation, brand and corporate social responsibility. We adhere to our Tax Control Framework, which enables VodafoneZiggo to proactively manage its tax risks. Our Tax department is part of the Finance department, reporting to the CFO, and includes specialists in direct and indirect taxes, payroll taxes, transfer pricing, tax compliance and reporting.
Tax is a standing item on the VodafoneZiggo Audit, Risk & Compliance Committee’s agenda. The VodafoneZiggo Tax Director updates the Audit, Risk & Compliance Committee on the material tax risks and mitigating actions taken. The VodafoneZiggo Audit, Risk & Compliance Committee oversees VodafoneZiggo’s tax position as a core part of corporate responsibility and governance.
GOVERNANCE
VodafoneZiggo’s Tax department is involved in the planning, implementation and documentation of business proposals, significant transactions and changes in the corporate structure. In accordance with our internal governance guidelines and Tax Control Framework, relevant tax matters are reviewed and approved by the Tax Director and, as appropriate, by members of the Senior Leadership Team. The Tax Director and Tax department ensure that senior management and relevant employees understand and adhere to VodafoneZiggo’s tax principles and ensure general tax awareness throughout the organisation.
For details on our income tax positions and tax-related contingencies, refer to notes 7 and 20 to our consolidated financial statements.
Tax contribution
Taxes collected and paid by VodafoneZiggo in 2023 include:
Direct taxes: including corporate income tax, municipal taxes and other taxes (for example, real estate tax).
Indirect taxes: taxes collected by and paid by VodafoneZiggo on behalf of governments, such as value added tax, wage tax, social security contributions and other taxes (for example, energy tax).
