Finastra - Tax Strategy for the period to 31 May 2021
Our approach to tax
Finastra’s tax strategy is aligned with its overall approach to corporate governance and risk management. While we seek to enhance shareholder value, Finastra is committed to complying with all relevant global tax laws and regulations as well as reporting and disclosure requirements. We will maintain open and collaborative relationships with all tax authorities.
Tax considerations impact our commercial operations and our business strategy, however, our business decisions are always aligned to our vision and reflect commercial and economic activities consistent with OECD recommendations.
Tax Risk Management and Governance
Our tax strategy is approved by the Executive Leadership Team and operates within a framework of effective controls to make and approve tax decisions, and review changes in the business to ensure the substance of contracts and business operations match the fiscal outcome.
The Chief Financial Officer (CFO) is the Executive Leadership Team’s responsible member with executive responsibility for tax matters and tax policy. Tax matters are reviewed on an ongoing basis as part of the regular finance cycle.
The Executive Leadership Team is apprised of all significant tax matters, including the Group’s approach to tax, and receive regular reports on the Group’s tax status from the CFO. The members of the Executive Leadership Team are listed here on the Finastra.com website. Additionally, the CFO, the General Counsel and the Chief Operating Officer all oversee corporate responsibility matters.
Attitude towards Tax Planning
We will use tax planning to support the business strategy and as such all decisions will have a sound commercial rationale, will be within the confines of the law and will take into account any impact that such actions will have on its external reputation.
Dealing with Tax Authorities
Finastra engages with all relevant tax authorities in a transparent manner, with the highest degree of integrity, in order to foster cooperation and trust. Finastra seeks to handle any queries or disputes through pro-active discussion and negotiation.
Where appropriate, Finastra will enter into consultations with tax authorities to assist in the shaping of future legislation and tax policy. All information requests from tax authorities – whether under a formal enquiry or otherwise - are processed in as timely a manner as possible in order to ensure that the information provided is accurate and complete.
How we deal with tax complexity
As a multi-national company, Finastra has complexity within its business operations. Finastra has an experienced in-house tax team which collaborates with the business to provide advice and guidance. Independent external advice will be sought with respect to transactions in which there could be significant uncertainty or complexity as to the tax treatment. Tax advisor support is typically sought on significant corporate transactions including re-financings, mergers or acquisitions.
Our vision is to unlock the potential of people and businesses by creating a platform for open innovation in the world of financial services. We work to achieve this by helping our customers to transform their businesses to become more agile, innovative, resilient and customer-focused. We value our reputation among clients and are committed to managing our tax risk to maintain this reputation and minimize the risk of uncertainty and disputes so that Finastra remains a trusted business partner.