Introduction
Glanbia is a better nutrition company, home to consumer brands and ingredients that help people the world over feel strong and nourished and to perform well at any age. Headquartered in Kilkenny, Ireland, Glanbia’s shares are listed on Euronext Dublin and the London Stock Exchange. We employ more than 6,000 people (includes joint ventures) in over 31 countries and our products are sold or distributed in over 130 countries around the world. The Glanbia group (the “Group”) consists of our Glanbia Performance Nutrition consumer branded segment, our Glanbia Nutritionals food ingredients segment and our joint ventures.
This statement of Glanbia’s tax strategy (“Tax Strategy”) sets out the strategy for conducting the Group’s tax affairs in those countries where we do business (including Ireland, UK and the US) and the processes and procedures for managing tax risks.
The Tax Strategy applies to all Officers, Executive and Non-Executive Directors, employees and contract, agency and temporary staff who are responsible for or have an impact upon the execution of our tax strategy.
Approach
Glanbia is a market leading, international organisation and we recognise that to remain internationally competitive, we need to deliver sustainable shareholder value through investment in our brands, production capabilities and facilities as well as by the acquisition of new businesses and intellectual property. In this regard, the tax strategy is to deliver a sustainable, optimised tax rate for the business, while ensuring that our transactions are conducted with integrity and in accordance with all relevant tax legislations within the countries where we do business.
Tax Strategy
Glanbia’s tax strategy is designed to:
- Ensure compliance with all legal and disclosure requirements across the jurisdictions in which the Group operates as well as with the applicable legal and fiduciary duties of directors and employees. Where appropriate, the Group seeks external tax advice to ensure all tax planning is compliant with relevant tax laws and to ensure that all tax planning transactions are conducted in accordance with relevant tax regulations. All of the Group’s dealings with its stakeholders (including shareholders, employees, consumers, customers and the communities where it operates) are based on best practice and there are procedures in place across the organisation to ensure full compliance with this policy; and
- Support the delivery of the Group’s strategy through the appropriate management of its tax affairs.
Glanbia maintains a limited appetite for tax risk as evidenced by the robust governance and management of tax risks described below.
Governance
The board of directors (the “Board”) is responsible for setting and monitoring the strategy of
Glanbia and, by extension, its tax strategy. The Board has a clear governance framework with
defined responsibilities and accountabilities. Glanbia’s code of business conduct, for example,
sets clear parameters for the conduct of all Officers, Executive and Non-Executive Directors,
employees and contract, agency and temporary staff.
Glanbia’s Group Operating Executive is responsible for overseeing the effective execution of the
business and, by extension, the tax strategy as well as monitoring risk exposures and establishing
appropriate internal controls for risk identification and mitigation.
Glanbia’s Audit Committee, in line with its responsibilities, reviews the design and implementation of the Group’s risk management systems and internal controls.
Risk management is a regular agenda item at Board meetings. In addition, the Board conducts a detailed consideration of the impact of the Group’s principal risks during the annual strategy process.
Tax Risk Management
Glanbia is a global organisation with business operations located in over 31 countries and is a supplier to more than 130 global markets. Cross-border supply arrangements inherently create tax related risks that require ongoing management.
A key imperative for delivering a sustainable, optimised tax rate is the effective identification and management of tax risks. This is supported by ensuring that a robust risk management culture exists throughout the Glanbia organisation. Accordingly, those individuals to which this Tax Strategy applies are responsible for identifying and escalating perceived tax risks to Glanbia’s Head of Tax.
The Head of Tax, in collaboration with the Glanbia Group Finance Director, is responsible for maintaining a risk register, the ongoing monitoring of tax risks as well as the establishment of parameters and procedures to minimise the likelihood of the identified tax risks materialising. Glanbia’s Audit Committee, Group Operating Executive (it is also the Group Risk Committee) and the Board review the Group risk register, including emerging risks, periodically during the year.
Relationship with tax authorities
Glanbia is committed to acting with integrity at all times, maintaining a transparent, open and honest relationship with tax authorities and to undertake any such dealings in a professional and
timely manner.
Where relevant and possible, we endeavour to engage with tax authorities over areas of tax uncertainty to minimise our tax risk and provide greater certainty for us and tax authorities in advance of our tax return being filed. We endeavour to respond to queries, information and clearance requests in a timely manner as this minimises the risk of damage to our reputation and brands.
Note:
Glanbia (UK) Limited considers that this Tax Strategy is compliant with its duty under section 161
and Schedule 19 of Finance Act 2016 to publish its tax strategy in respect of the financial year ended
30 December 2023 for all relevant UK companies.
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