Tax strategy

On 1st June 2024, Mazars LLP changed its name to Forvis Mazars LLP as the Partnership joined a new global network with the US professional services firm Forvis.

The list of active entities within the UK Group to whom this tax strategy applies can be found in Appendix 1.

Strong values have been at the heart of the organisation since its creation. They guide all team members in their daily actions, providing a common base of values that all Forvis Mazars UK partners and teams share and respect. These values are detailed in the firm’s Charter, individually signed by each CARL (equity) partner:

• Integrity
• Responsibility
• Diversity and respect for individuals
• Technical excellence
• Independence
• Continuity

How Forvis Mazars UK manages UK tax risks

Forvis Mazars UK manages its tax affairs with the objective of ensuring compliance with legal requirements and payment of the right amount of tax.

Forvis Mazars UK is generally liable to corporation tax, employment taxes, VAT, partners’ income tax, insurance premium tax and stamp duty. Appendix 2 shows Forvis Mazars UK’s contribution to UK tax, through payments and collections for the 2019 to 2023 financial periods.

The Executive Board takes responsibility for the execution of the UK tax strategy, supported by a team of in-house finance and tax professionals. The day-to-day management of tax matters and compliance rests with the CFO. Working with the CFO, the Partnership Tax Group (“PTG”) meets regularly to review compliance and to address any tax issues faced by the partnership and its partners.

VAT and payroll taxes are the responsibility of the Finance team led by the CFO and technical assistance from the wider Tax practice is requested when required. The Partnership Tax Return, any related corporation tax returns for subsidiaries and the individual partners’ tax returns are prepared by the partnership tax team and reviewed by the Partnership Tax Manager and Partner responsible for Partnership Tax. Both of these individuals are experienced tax professionals. The CFO is responsible for signing all corporate filings, and the CFO signs the Partnership Tax Return Full real time status reports on filings and relevant payments are maintained by the Partnership Tax Manager and discussed regularly with the Partner responsible for Partnership Tax and the CFO.

A tax risk register covering all aspects of tax is maintained by the Partnership Tax Manager and reviewed for compliance with the CFO and Finance team. The PTG meets quarterly to discuss any potential risk areas that are identified, and actions are prescribed if improvements are identified as being needed. We maintain and regularly monitor robust processes and controls designed to manage tax risk, including the risk of errors arising which could impact the amount of tax that we pay.

A member of the UK Executive is included within the membership of the PTG and regularly attends the PTG meetings. Questions of tax policy and transactional advice are asked by the Executive of the PTG and are reported back. Inclusion of a member of the UK Executive within the PTG also provides a facility for the appropriate escalation of any tax risks or concerns identified to the Executive. Reporting to HMRC outside the normal tax return process is handled by the Partnership Tax Manager, who will co-ordinate appropriate responses on behalf of the firm.

Our business attitude to tax planning

In keeping with our desire to be compliant on all regulatory and legal matters, Forvis Mazars UK’s focus is on ensuring that we are fully compliant with the spirit and wording of tax legislation, and this drives Forvis Mazars UK’s approach to tax planning.

We will only access appropriate tax reliefs and incentives that are generally available to businesses. Any tax reliefs claimed or planning undertaken will be for commercial purposes only and required to align with our reputational objectives. Any such claims or planning are mainly focused on removing double taxation and major distortive timing differences.

As all partners are required to ensure their own tax returns are reviewed and submitted by the PTG, we also ensure that individual partners comply fully with the spirit and wording of our tax principles. All partner tax payments are made centrally from the practice to HMRC to ensure that all partners’ liabilities reflect the underlying tax calculations and are paid within the required deadline.

All partners and employees are also required to complete mandatory training on relevant areas of legislation and governance and must adhere to the Forvis Mazars UK Global Code of Conduct. The Global Code of Conduct, which can be found here, Our-code-of-conduct sets out Forvis Mazars UK’s overall attitude to risk.

The level of risk the business is prepared to accept for UK taxation

Forvis Mazars UK takes a conservative approach to managing its tax affairs, with the overall tone being set by the Executive. It seeks to be fully compliant with all legal requirements and requires a high level of certainty over the tax that Forvis Mazars UK and our partners pay.

The use and regular review of the Tax Risk Register allows us to put in place appropriate processes and controls for managing identified tax risk and to monitor and update these processes and controls as tax risks change or new tax risks are identified. This, in turn, enables us to maintain tax risk at an acceptably low level.

The finance team and PTG regularly undertake available internal training from our Tax practice to ensure they are aware of developments in UK tax compliance. Outside training is also accessed in the form of regular tax issue updates.

Advice is sought from our Tax practice when required and is generally sufficient for our requirements, so there is an infrequent need to obtain external advice on tax matters, although this would be sought if required.

How the business works with HMRC

Forvis Mazars UK treats all stakeholders in the business, including HMRC, with the respect, integrity, and professional courtesy we would like third parties to show us.

In order to build a relationship of trust and respect with HMRC we endeavour to always be open, honest and straightforward with them in our dealings on tax. We communicate with HMRC based on a policy of full disclosure.

We meet with and correspond with HMRC regularly and share information about significant commercial developments or transactions. Where there are areas of significant uncertainty in how tax legislation applies, our policy is to fully disclose this to HMRC.

In the event of any queries from HMRC, we will endeavour to address those promptly and in a spirit of cooperative collaboration with a view to resolving any disputes quickly. As noted above, if such an enquiry arises it is the duty of the Partnership Tax Manager to take control of the process of responding and to keep HMRC briefed on progress as much as reasonable. Should we make any inadvertent errors or mistakes we will endeavour to rectify them as soon as reasonably practicable once they come to our attention, providing full disclosure to HMRC of all the relevant facts.

Appendix 1

This tax strategy applies to Forvis Mazars LLP and the active UK resident subsidiaries listed below

Appendix 2

The tax contribution made by Forvis Mazars in the UK is set out below