In the UK, UnitedHealthcare (“UHC”) comprises a number of companies that are part of a wider corporate group wholly owned by the US parent organisation, UnitedHealth Group Incorporated (the “Group”). The Group comprises a diversified healthcare business and is involved in the provision of health benefits and services, including clinical care resources, information and technology to meet the evolving needs of a changing health care environment. The tax strategy below applies to UHC Companies incorporated in the UK, and complies with the statutory obligations of section 161 and paragraph 19(2) of Schedule 19 of Finance Act 2016.
We want our tax affairs to be transparent and compliant with tax legislation and recognise that managing tax compliance is increasingly complex. Our internal structure is set up to ensure:
We undertake tax planning as part of our overall business strategy. Professional advice is sought on a transactional basis, with the depth of such advice being driven by our assessment of the risk presented by each opportunity. We do not undertake aggressive tax planning, the sole purpose for which would be obtaining a tax advantage. We have a responsibility to minimize our tax risk and our exposure to negative publicity through non-compliance with tax laws.
We see compliance with tax legislation as key to managing our tax risk. We understand the importance of tax in the wider context of business decisions and have processes in place to ensure tax is considered as part of our decision making process.
Our tax planning aims to support the commercial needs of the business by ensuring that the companies’ affairs are carried out in the most tax efficient manner whilst remaining compliant with all relevant laws. The tax function is therefore involved in commercial decision making processes and provides appropriate input into business proposals to ensure a clear understanding of the tax consequences of any decisions made.
We have relationships with professional advisers that allow us to seek expert advice on complex areas of tax. Our approach is to ensure we are compliant and understand our responsibilities with regards to tax, rather than looking for ways to aggressively avoid payment of tax.
We are conscious of the hugely negative publicity attracted by a bad attitude towards tax, and see strong internal processes and a good relationship with our professional advisors as the best way to manage this reputational risk.
Our communication with HMRC is focused around timely tax compliance, for example meeting relevant filing and payment deadlines for taxes due. We commit to:
This is part of the OECD (Organisation for Economic Co-operation and Development) initiative to require large multinational enterprises (MNE) to report details of taxes paid in each territory where they have a permanent establishment (PE) and to enable these territories to share the information. This is applicable to all MNEs having consolidated annual revenue greater than €750 million.
The Group falls into this category and therefore all companies in the Group must comply with the Country by Country reporting requirements.
The information will be coordinated on behalf of the group companies across the world by UnitedHealth Group Inc and submitted to the Internal Revenue Services (IRS – US tax authority) who in turn will share it with the relevant tax authorities e.g. HMRC.