Our Code of Business Ethics reflects the Ericsson Group´s commitment to conducting business responsibly, including being a responsible corporate citizen. It also contains rules for all individuals performing work for Ericsson to ensure compliance at all times with applicable laws, rules and regulations.
The following UK tax strategy covers all UK taxes which are relevant to our companies.
Approach to risk management and governance arrangements in relation to UK taxation
Ericsson complies with tax rules and payment obligations throughout our global business operations. This is ensured through a robust and tightly controlled governance system handling tax strategy and compliance which is carried out by Company Control Hubs. The Hubs each have a Tax Management Unit responsible for the legal entities and branch offices in its region. The hubs are governed by Group Function Finance which is headed by the Chief Financial Officer. Within the Group Function Finance the functional responsibility for the Group tax matters lies with the Head of Group Taxes.
Responsible for the UK corporate income and indirect tax matters are the UK Tax Managers. Human Resources handle the UK payroll related taxes. The Senior Accounting Officer monitors the UK tax matters by establishing and reviewing necessary controls to ensure the compliance with UK tax law.
Attitude towards tax planning
It is our policy to pay the right amount of local taxes wherever we do business.
The functional responsibility for tax matters within the Ericsson Group lies within Group Taxes. Group tax strategy is focused on compliance with tax legislation and regulations in all countries where the Ericsson Group operates and on optimized management of taxes, while maintaining quality and keeping deadlines, to avoid unnecessary taxes and other charges.
The UK Tax Managers ensure that all global tax initiatives comply with UK law.
Level of risk in relation to UK taxation
Ericsson UK has a low appetite for tax risk and works towards achieving a high degree of certainty in its current and future tax liabilities.
We utilise tax reliefs and allowances available and according to UK laws. The UK Group will use its best judgement in determining appropriate course of action, using available reliefs and incentives where possible and liaising with HMRC where appropriate.
Approach towards dealings with HMRC
Ericsson UK seeks to comply with its tax filing, tax reporting and tax payment obligations. The general policy is to be transparent and proactive in all interactions with HMRC through regular communications with HMRC. The main responsibility for the relationship lies with the UK tax managers.