Publication of a Solvency & Financial Condition Report is a mandatory requirement of the Solvency II Directive for all insurance companies domiciled in the EU.
Solvency II, which entered into force on 1 January 2016, is a comprehensive updating of the way in which insurance companies in the EU are supervised by their local regulators.
Solvency & Financial Condition Reports have been developed for the following insurance company subsidiaries of Allianz Holdings plc: Allianz Insurance plc, British Reserve Insurance Co. Ltd, Fairmead Insurance Limited, Highway Insurance Company Limited, Liverpool Victoria Insurance Company Limited and Trafalgar Insurance Public Limited Company which are all regulated by the Prudential Regulatory Authority.
The Allianz Group has a global reach operating in more than 70 countries including the UK. Being a tax collector as well as a taxpayer, tax is an integral part of our overall Group business principles and codes.
The Allianz Group acts transparently and responsibly in all tax matters and works closely with experts, auditors and tax authorities, including HMRC, to ensure that we pay our fair share of taxes.
The Allianz Group tax strategy includes the following key rules and principles:
These principles provide the basis for our Allianz Standard for Tax Management which represents the framework and minimum requirements for all tax relevant processes, methods and structures within the Allianz Group. All Group entities including those situated in the UK have to adhere to the standard when conducting their tax activities. With this standard, we are committed to a transparent compliance and disclosure policy, seeking to maintin good relationships with tax authorities, acting as a trusted partner, paying accurate amounts of taxes in a timely manner. In order to achieve consistent and full implementation of our tax strategy, the Group operates local tax functions in its major operations including the UK.
Allianz’s appetite for tax risk is low. We therefore seek to minimise tax risks by actively and continuously identifying, asessing, monitoring and managing them. We constantly aim for certainty in our tax positions and obtain internal or exteral advice and validate our position where appropriate. If we seek rulings from tax authorities to confirm an applicable tax treatment, we do so based on full disclosure of all relevant facts and circumstances.
We seek efficiency in tax matters, including the prevention of double taxation and pay only the tax due following reasonable interpretation and application of tax rules. We do not engage in aggressive tax planning or artificial structuring that lacks business purpose or economic substance. Our tax activities are conducted with the clear understanding that all facts and circumstances must be disclosed to tax authorities.
This strategy is aligned with our Code of Conduct and is approved, owned and overseen by the Allianz Holdings plc Board.
1 The purpose of this statement is to satisfy the UK legislative requirements of paragraph 19(2) Schedule 19 Finance Act 2016 in relation to the publication of tax strategy insofar as it affects our UK Group. This covers the period ending December 2020 and we review and refresh our tax strategy annually.
2 Defined as entities in which Allianz Holdings plc has a controlling stake (either directly or indirectly).
Notice regarding tax strategy for Allianz Technology SE UK
Concerning financial year ending 31 December 2019
This strategy applies to the Allianz Technology SE UK Branch. The Allianz Technology SE UK Branch is part of Allianz Technology SE, which is part of Allianz Group.
Allianz operates in more than 70 countries including the UK. Tax is embedded in almost every aspect of doing business and heavily impacts the key financial data and perfor-mance of the Group. The Group’s key objective is to ensure full compliance with the tax regulations of all the countries in which it operates.
Allianz operates as a responsible tax payer and collector to ensure that the reputation of the Group is protected.
This includes accurate and timely re-porting, and effective tax risk manage-ment. In order to achieve consistent and full implementation of this target, the Group operates local tax functions in its major operations including the UK.
Standards for tax management across the Group are set out in the Allianz Standard for Tax Management.
Allianz only accepts unavoidable tax risks at Group level as well as for the UK. Where there is signifi-cant uncertainty or complexity in relation to a risk, external advice may be sought.
Any tax planning and optimiza-tion activities undertaken are compliant with tax laws and supported by solid business reasons to sustain a credible long-term reputation with tax authori-ties.
The Group engages with tax au-thorities, including HMRC, with honesty, integrity, respect and fairness and in a spirt of cooper-ative compliance. The Group is prepared to litigate where it dis-agrees with a ruling or decision of a tax authority but will first seek to resolve any disputed matters through proactive and transpar-ent discussion and negotiation.