Tax laws are often unclear and subject to a broad range of interpretations, as discussed earlier in this report.
When combined with the unavoidably complex financial affairs of large multinational companies, this can lead to uncertainty and, on occasion, unpredictable outcomes. Vodafone operates within a clearly defined governance framework on tax that is designed to provide certainty for all stakeholders with an interest in our tax affairs. We have a long-established Tax Strategy that is underpinned by our Tax Principles and supported by our Tax Risk Management Policy (first published in 2009) and includes our Tax Code of Conduct (first published in 2007). This Tax Policy is mandatory for all our local operating subsidiaries and any associated legal entities, and we encourage our joint ventures and associates to follow similar principals to those we have outlines.
Our tax governance framework is overseen by the Group Executive Committee (ExCo) as well as the Audit and Risk Committee of the Vodafone Group Plc Board, with key issues reviewed at least twice a year.
Key components of our Tax Strategy
To manage efficiently the tax cost to the Group of doing business, including the Group's cash taxes and effective tax rate, within the ambit of all applicable laws
Risk and reputation
To control and manage tax risks and the Group's reputation through appropriate policies, communication and robust defence
To be recognised as a vital business partner by our stakeholders and to facilitate the growth and development of the Group's business activities in a tax-efficient manner
To act, where possible, in meeting the above objectives in a way that will enhance our customers' experience
To influence govermments and tax authorities constructively and positively in the interests of all our stakeholders
To develop and enhance our people professionally and personally as part of a world-class international tax team
To ensure the integrity of all reported tax numbers and timely compliance with all relevant statutory tax obligations
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