Nasdaq OMX Europe Limited: Our Approach to Tax in the UK

Introduction

Nasdaq OMX Europe Limited provides services including sales and marketing related to market data, commodities and equity businesses; system development and adaptations; accounting, HR and facility management services to other affiliate entities.

The company’s approach to tax in the UK mirrors that applicable across the wider NASDAQ group and is updated and reviewed annually. The company is committed to complying with tax laws in a responsible manner and to having open and constructive relationships with the UK tax authorities. Our approach to tax aligns with NASDAQ’s Code of Ethics which clearly sets out what is expected of everyone at NASDAQ. All members of the group and their employees embrace good governance and hold themselves to the highest ethical standards in all interactions as trusted partners to shareholders, regulators, clients and the wider investing public.

The company recognises the importance of its tax obligations and takes seriously our responsibility to conduct business ethically and contribute to society through the payment of taxes, including Corporation Tax, VAT, PAYE, and National Insurance

Management of UK tax risks

As mentioned above the company is committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities, we seek to ensure that our taxes are managed with a high degree of integrity, which is core to the values that underpin the NASDAQ group. We expect others that we work with to share NASDAQ’s commitment to ethics and compliance; we do not tolerate the facilitation of tax evasion by people who act for or on behalf of the company or the group.

We seek in structuring our business activities to ensure that tax is properly considered so that we remain fully compliant with relevant tax laws.

We are fully transparent and comply with the law so that tax returns and payments are made on time and proper disclosure is made to the HMRC and we will not seek to undertake contrived or artificial transactions (including the use of marketed or abusive schemes) or those with no commercial or economic substance.

Intra group transactions are carried out on an arm’s length basis reflecting the economic contribution of each group company

Where the tax treatment of a particular matter might be uncertain or contentious, favourable positions will only be adopted in our tax returns where it is considered likely that the position will be accepted as correct by HMRC. We use external tax advisers and service providers where there is a need for specialist guidance and support, for example where we require additional resource or expertise for instance in new areas of the law or on acquisitions and disposals.

Attitude to tax planning

We ensure that we adhere to relevant tax law and that we minimize the risk of uncertainty or disputes so that tax will follow commercial outcomes, taking account of our understanding of the currently applicable laws and practice. We will only engage in efficient tax planning that supports our business and reflects commercial and economic activity and reality.

We seek to conduct transactions with NASDAQ group companies on an arm’s length basis and in accordance with current OECD principles.

Tax incentives and exemptions are sometimes implemented by the UK Government in order to support investment, employment and economic development. Where these exist and are appropriate to the company we seek to apply them in the manner envisaged when the relevant legislation was enacted.

We do not, and will not, seek to engage in contrived or artificial transactions or those with no commercial or economic substance in order to avoid taxation or to defeat the stated purpose of legislation.

Acceptable risk level for UK taxation

The company takes a responsible approach to managing our tax affairs and will always comply with applicable tax laws and regulations and our approach to tax risk follows the same principles that apply to all other business risks.

We are particularly aware of the strongly principled reputation that the wider NASDAQ group has earned over a long period and consider reputation and corporate social responsibility alongside financial impacts in all matters including those related to tax, as well as assessing HMRC’s anticipated view of the tax outcomes and any potential impact on our ongoing relationship with them.

Management of tax risk aims to ensure that the company meets disclosure requirements and its obligations to file returns and other tax related reports and to correctly calculate, collect and pay tax to HMRC at the appropriate time in the course of meeting its business objectives.

We mitigate the risk of transactions being recorded incorrectly for tax purposes by ensuring that we have appropriate accounting, business and tax controls in place and foster a climate to identify this and other tax risks and ensure that processes to address such risks are communicated and implemented.

Working with HMRC

The company seeks to maintain a transparent and constructive relationship with HMRC in the UK and to engage with them on an open basis in a spirit of cooperative compliance. Group policy requires proper disclosure of tax matters to all tax authorities and, consistent with the NASDAQ corporate Code of Ethics, concealment or deliberate non-compliance is unacceptable.

Professional opinions are sought from reputable independent external advisers on any matters where the amount of tax involved is significant or where tax treatment may be contentious or uncertain. Should the complexity of tax law sometimes mean that there is uncertainty surrounding its interpretation or we disagree with HMRC’s interpretation relating to particular transactions we will seek to resolve such differences of opinion through discussion and negotiation.

Disclosure obligation

We regard this statement as complying with the company’s duty under paragraph 16(2) of Schedule 19 of the Finance Act 2016 to publish its Tax Strategy for the year ended 31 December 2017.