Our overall vision for tax is to manage tax in a way that maintains compliance with all relevant laws and regulations whilst achieving our overall vision of being a global world class information technology and business process services leader helping our clients succeed. We will achieve our vision by pursuing the below strategic objectives on tax, each of which are underpinned by CGI core values, our ethical principles and standards for business conduct. As with any area of our organisation, our collective success is based on our competence, commitment and enthusiasm in pursuit of the below objectives.
The below tax strategy is published for the financial year to 30 September 2023 and is presented in accordance with Finance Act 2016, Schedule 19 Paragraph 22. It is published on behalf of all UK tax resident entities in the CGI Group.
Responsibility as a Taxpayer
We are committed to complying with all tax laws and regulations applicable to the countries in which we operate. Beyond legal compliance, this commitment is consistent with our values and our adherence to the principles of the Organisation for Economic Co-operation and Development (OECD). As a matter of principle, we oppose tax evasion and recognise our key role in fostering economic and social development in the communities where we live and work.
Management of Tax Risks and Tax Governance
The Chief Financial Officer is responsible for the CGI Tax Department, which brings together experts from our headquarters in Montréal and our Strategic Business Units, taking the unique characteristics of each geography into consideration. The operational management of tax risk is delegated to the internal tax team via the Vice President for Treasury, Tax and Real Estate. All members of the department are suitably experienced and possess appropriate professional qualifications. The team oversees tax compliance and scrutinises changes to tax laws in all jurisdictions where we operate. Where necessary, the Tax Department also receives support from external consultants to ensure compliance
Approach to Tax Planning
We strive to deliver strong, consistent financial performance that sustains long-term growth and benefits for both our members and shareholders, minimising tax cost whilst abiding by relevant tax laws and regulations. We ensure that we pay tax responsibly and as members, we embrace our social responsibilities and contribute to the continuous development of the communities in which we live and work. We undertake all business activities in compliance with laws and regulations and in accordance with the CGI values. All tax decisions undertaken have an underlying commercial rationale to support our growth and commitment to clients, members and shareholders. We view tax as a cost to our business that we have a duty to manage in accordance with the interests of our wide stakeholders. We do not engage in aggressive tax planning and always seek to operate within the letter and the spirit of the law.
Accepted Level of Risk
CGI UK follows the highest standards of management practices and has implemented a comprehensive management model to ensure appropriate levels of oversight. This management model includes a regular review of key tax processes to ensure effective internal control and to ensure minimal risk of errors in tax compliance obligations. The Board of Directors oversees the integrity of the Company’s internal control and management information systems by reference to the COSO (Committee of Sponsoring Organisation) framework and complies rigorously with its Sarbanes Oxley reporting obligations. The Audit and Risk Management Committee reviews and monitors internal control procedures, programs and policies and assesses the adequacy and effectiveness of internal controls. The management assumes the responsibility ensuring that we are compliant in our tax compliance obligations and proactively mitigate tax risks to acceptable levels. Management ensures compliance with our Global Tax Strategy compliance; and report all material matters to the Audit and Risk Management Committee and to the Board.
Co-operation with HMRC
We always act honestly and ethically. CGI never seeks to gain undue advantages and avoids conflicts with tax authorities. We strive to maintain an open, transparent and pro-active relationship with tax authorities in the jurisdictions where we operate. We always act honestly and ethically, engaging in fair and transparent business activities. We will interpret tax law using relevant guidance and discussing interpretation with HMRC where appropriate to minimise disputes and review possible risks. We maintain full and timely disclosure of necessary information as required by law, by providing tax authorities with necessary information on a real time basis, wherever possible. If disputes arise, we will maintain an open collaborative and constructive relationship with tax authorities to achieve early agreement and resolution.