This tax strategy document is published in accordance with paragraph 19 and 22 of Schedule 19 Finance Act 2016 and sets out the governance in relation the Playtech Group’s tax affairs.
The content of this strategy is prepared with specific reference to the UK legislation and tax authority and is therefore considered to be compliant with the Group’s obligations in respect of the Publication of Tax Strategies. Specifically, the UK tax strategy contained herein relates to the Playtech Group’s UK subsidiaries.
This document covers all taxes to which the Group is subject, including corporate tax, payroll taxes and VAT.
Playtech is the leading technology partner to the gambling and financial trading sectors.
The Group is headquartered in the Isle of Man, where the parent company is tax resident. Playtech has offices in 24 countries, with the majority of its development and technical operations in Ukraine, Estonia, Latvia, Bulgaria and Gibraltar. These locations are well known as technology hubs with a large population of highly skilled experts. The Group’s presence in some markets, such as Austria, Australia, Denmark and Italy, is a result of acquisitions.
Approach to risk management and governance
The tax strategy of the Playtech Group is approved by the Board of Directors and monitored by the Audit Committee. The Audit Committee reviews the tax strategy annually as part of its considerations in connection with the audited financial statements.
The Group’s Head of Tax is responsible for ensuring that policies and procedures that support the approach are in place, maintained and used consistently globally. The Group Head of Tax reports on a periodic basis to the Board of Directors on how tax risks are managed, monitored and assured and on improvements that are being made. In this way the Board of Directors provides governance and oversight of tax risks.
Approach to tax
The Playtech Group is committed to complying with tax legislation in the UK and the other jurisdictions in which it operates. The Group acts responsibly with respect to its tax obligations. Further information on the Group’s values can be found here: https://www.playtech.com/responsibility-regulation/our-values.
The Group’s business activities in its various territories results in payments to relevant governments, including corporate income taxes, royalty, employment, property taxes, duties and other taxes. In addition, the Group collects and pays employee taxes, as well as indirect taxes such as VAT and sales tax. These taxes form a significant part of the Group’s economic contribution to the countries in which it operates.
Attitude towards tax planning
Playtech engages in tax planning that supports its business and reflects commercial and economic activity. Playtech selects the location of its operations based on commercial and operational factors that extend well beyond tax, including: the prevailing regulatory environment available, a widely available pool of technical talent, the linguistic capabilities in these jurisdictions, the location of the Group’s licensees, labour and operational cost factors. The Group adheres to relevant tax law and seeks to minimise the risk of uncertainty and disputes.
The level of risk in relation to taxation that the Group is prepared to accept
The structure of the Group’s tax affairs is based on sound commercial principles and in accordance with the relevant tax legislation. The Group seeks to minimise the risk of uncertainty and disputes and does this through proactive dialogue with the tax authorities (including HMRC) and by obtaining third party expert advice, where appropriate.
Approach to engaging with tax authorities
The Group engages constructively with local tax authorities, either directly or through trade associations and other similar bodies, as appropriate. In the UK, the Group is committed to maintaining a transparent relationship with HMRC to ensure compliance. This is executed through engagement with HMRC including engaging through trade associations.