This document is produced in compliance with the Finance Act 2016 requirement for Vivo Energy to publish its UK tax strategy online and sets out Vivo Energy’s approach.
Vivo Energy is an African focused company with about 16 offices across the African continent. Vivo Energy tends to seek an open and transparent relationship with the tax authorities in all the jurisdictions in which it operates. Vivo Energy pays tax in accordance with the appropriate legislation in each of these jurisdictions http://www.vivoenergy.com/en-gb/about/ourprinciples.aspx
Our approach to operating responsibly is built upon mitigating risks wherever possible.
Vivo Energy has rigorous risk management policies in place to ensure that it complies with all relevant national and international legislation and regulations. The policies and their implementation are overseen by the finance function, which reports directly to the Management Team.
The group aims to ensure that all personnel with tax responsibilities, or whose business activities may have a tax impact, have a consistent understanding of how tax risk is identified, assessed, reported and managed.
The group seeks to ensure that tax planning is aligned to economic activity. This means that all tax decisions are made in response to commercial reality, and tax is only one of many factors that are taken into account when making business decisions.
Like any business expense, however, the group has an obligation to manage tax costs as part of its financial and fiduciary responsibility. The group will therefore seek to respond to tax incentives and exemptions granted by governments where appropriate.
Vivo Energy has a measured approach to risk. In determining the level of risk in relation to taxation the group is prepared to accept, we consider various factors, including reputational, financial and commercial risks against the potential benefits of implementing tax arrangements or adopting particular filing positions.
We seek to minimise uncertainty over any position and seek expert and independent advice and opinion as appropriate in relation to decisions relating to tax risk.
Vivo Energy’s Code of Conduct makes clear that Vivo Energy will engage, where possible, with the relevant authorities. The group seeks to work positively, pro-actively and transparently with tax authorities to minimise the extent of disputes and achieve certainty, wherever possible.
This includes being committed to providing all relevant information that is necessary for tax authorities to review possible tax risks. We seek to work collaboratively with tax authorities to achieve early agreement on disputed issues and certainty on a real-time basis, wherever possible.