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Brookfield’s UK Tax Strategy This UK tax strategy is consistent with Brookfield Asset Management Inc.’s (“Brookfield”) overall global tax strategy and covers all UK entities consolidated in Brookfield’s financial statements prepared under International Accounting Standards. Brookfield regards the publication of the information set out below as compliance with the duty under Finance Act 2016, Schedule 19, paragraph 16 to publish a tax strategy and applies for accounting periods ending within the 2017 calendar year.
Brookfield is committed to full compliance with all statutory obligations and full disclosure to tax authorities. The company’s tax affairs are managed in a way which takes into account the corporate reputation in line with Brookfield’s overall high standards of governance.
Risk Management and Governance
Brookfield’s Risk Management Committee (“RMC”), which is comprised of members of Brookfield’s Board of Directors, has oversight for risk management for the Brookfield group, including those risks related to taxation. The RMC approves Brookfield’s Tax Risk Management Policy (the “Policy”) annually and reviews material tax risks quarterly. The RMC reports relevant tax matters to the Board of Directors if appropriate. Consistent with how all risks are managed, tax risks are managed on a decentralized basis and the senior management of each business unit is responsible for adhering to the Policy. The Chief Financial Officer and Managing Partner responsible for taxation have oversight of tax risks across the organization and are authorized to manage the tax risks and approve tax positions, tax settlements and payments, in accordance with the Policy.
Brookfield seeks to comply with tax laws and filing deadlines in the jurisdictions in which Brookfield operates having regard to the legal and administrative practices in each jurisdiction. Brookfield may utilize available tax incentives, reliefs and exemptions provided these are aligned with the associated tax legislation.
Managing Tax Risk
Brookfield actively seeks to identify, evaluate, monitor and manage tax risks to ensure that they are consistent with Brookfield’s objectives. In reviewing the tax risks associated with the business operations, Brookfield will consider the following:
- legal duties of directors and employees;
- compliance with internal policies and procedures;
- impact on Brookfield’s relationships with tax authorities;
- and maintenance of Brookfield’s reputation as a world class asset manager.
In situations where tax law is unclear or subject to interpretation or Brookfield does not have the internal expertise to assess a particular tax position, tax advice is obtained from external advisors who have the appropriate technical expertise.
Relationship with HMRC
Brookfield is committed to maintaining a cooperative and open working relationship with HMRC and ensuring that any tax audits are efficiently and effectively managed. Brookfield seeks to make fair, accurate and timely disclosures in correspondence and tax returns and respond to queries in a timely manner