The PGA European Tour Group is a global premier golfing organisation. Our core business is the promotion, management and administration of professional tournament golf, namely The European Tour, The Staysure Tour, The Challenge Tour, and our flagship event in partnership with the US PGA, The Ryder Cup. Our aim is to provide our members with the best possible playing opportunities around the world.
Our approach to tax risk management and governance
Our Board of Directors, in conjunction with the audit and risk committee, ultimately provides groupwide leadership in respect of our approach to tax.
This approach is implemented by our Chief Financial Officer (‘CFO’), together with our Head of Tax, Treasury & Regulatory, and Head of Finance Operations, with the wider support of the finance function. Our Audit & Risk Committee monitors and challenges our tax governance and risk management framework which allows us to identify and address tax risks.
This year, for the first time, we are subject to the Senior Accounting Officer legislation which requires our entities to maintain appropriate tax accounting arrangements. The CFO, as our nominated Senior Accounting Officer, considers whether there are appropriate controls in place to mitigate tax risk.
As a wider group, we are currently in the process of implementing a tax policy framework, which will further formalise the standards associated with our tax activities and continue to strengthen our existing controls and systems. Furthermore, we have systems based automated controls (e.g. for VAT). We continue to recruit into our tax and finance functions, further improving the resources and expertise within the business.
In addition, to ensure that tax risk is minimised, and to ensure we remain compliant, we work closely with our qualified professional advisers. Through this business partnering with our advisers, we receive advisory, compliance and operational support on specific UK and non-UK tax matters to supplement the skills of our finance teams.
The level of tax risk we are prepared to accept
We have a low tolerance in relation to tax risk. We seek to ensure that tax risks are fully assessed and minimised.
Our attitude towards tax planning
Our tax affairs are managed to support the commercial objectives of our business. Our primary business objective in respect of tax is to ensure certainty and compliance. The business does not engage in any aggressive tax planning.
We ensure that the overall tax planning is considered by the Board of Directors and supported by appropriate external tax advice to ensure that it is conducted in a manner which is compliant with all applicable tax laws.
As our business continues to evolve, we ensure that we are aware of the steps that we need to take in order to remain compliant and so not to expose the group to material financial and reputational risk.
In cases where there is significant uncertainty, we seek the advice of our professional advisers and if appropriate, we would seek advance clearance from HMRC or the relevant overseas tax authorities.
Our approach to dealing with HMRC
We are committed to working with HMRC in an open, transparent and cooperative manner.
We seek to not only comply with our UK tax filing and payment obligations but build and sustain relationships with HMRC by providing them with all of the information they require to understand our business and assess tax risk.
In the event that we identify an error in a submission made to HMRC, we would seek to disclose this as soon as reasonably possible and pay any additional tax as appropriate.
Should there be any disputes with HMRC over the application or interpretation of UK tax law, we shall work openly and honestly to resolve the dispute.
This tax strategy has been published by PGA European Tour in accordance with Para 16(2) Schedule 19 Finance Act 2016, and applies for the year ended 31 December 2019.