Arena Tax Strategy 2024

Arena Tax Strategy 2024

Tax Strategy – Year ended 31 March 2024


This document has been approved by the Board of Arena Group and sets out our policy and approach to conducting our tax affairs and dealing with tax risk. Publication complies with the requirements of Finance Act 2016 Schedule 19, paragraph 16(2). We will review our tax strategy annually and any amendments will be approved by the Board.

We provide integrated event solutions, designing and delivering temporary environments for a variety of sporting, commercial and cultural events. Our business activities are subject to various taxes, including corporate income taxes and employment taxes. We also collect and pay employee taxes and indirect taxes such as VAT. These taxes contribute to the societies where we operate.

HMRC (HM Revenue & Customs) Requirements for a Published Tax Strategy

Schedule 19, Part 2 of the Finance Act 2016 requires Arena Group to publish a tax strategy as it operates in the UK as part of a Multinational Group with global turnover exceeding €750m. The Act covers four specific requirements:

  1. The approach to risk management and governance arrangements in relation to UK taxation.
  2. The attitude of the group towards tax planning.
  3. The level of risk in relation to UK taxation that the group is prepared to accept.
  4. The approach of the group towards its dealings with HMRC.

These requirements are dealt with below and accordingly, Arena Group is of the view that it is compliant with the Finance Act 2016 in respect of the year to 31 March 2023.

Arena’s Management of Tax Risk in the UK

Arena Group recognises that, amongst its duties to its shareholders, it has an obligation to comply with laws and regulations of countries in which Arena and its subsidiaries operate, in accordance with rules set by various governments. Arena Group is committed to ensuring compliance in respect of all taxes worldwide and to having an open and constructive relationship with all tax authorities. Arena Group has zero tolerance to tax evasion and where the application of tax law is unclear, the Group obtains appropriate professional advice in order to ensure proper adherence with all relevant statutory, regulatory and reporting obligations.

Arena Group monitors changes in tax laws and tax practices in order to manage tax risk. This is a key area of focus with regular training from both in-house subject matter experts and external advisors, to ensure staff have the skills to identify and address tax risks.

Arena Group has global policies and procedures in place in order to maintain robust internal controls in relation to all aspects of the company’s operations including to taxation and financial reporting. The Company also ensures compliance with the Country-by-Country Reporting requirements for multinational entities. For day-to-day commercial needs, the Arena tax team works with the business operations groups as an equal partner in providing clear, timely, relevant and business-focused advice across all aspects of tax. The aim is to ensure that commercial objectives are achieved while adhering to tax laws and regulations. The Arena tax team is involved throughout the lifecycle of business transactions, from planning to implementation, so that there is a clear understanding of all associated tax costs and tax compliance obligations.

The tax implications of all major transactions (for example M&A transactions, corporate structure changes, and cross-border intra-group transactions) will be reviewed in advance by the Arena Tax team with appropriate support from external advisors.

Arena ensures that it is complying with all relevant statutory, regulatory and reporting obligations – ensuring complete and accurate tax returns are filed and the correct amount of tax is paid on time. In addition to following the guidance on international tax matters as published by the OECD, where appropriate.

Arena manages its tax costs by ensuring that tax is considered when the group carries out significant transactions or reorganizations, and that appropriate steps are implemented, which accords with the Group’s long term business strategy and stakeholder expectations.

Arena ensures that stakeholders have a comprehensive understanding of the Group’s tax position.

Arena’s attitude to tax planning

All tax planning undertaken must be driven by a business purpose or commercial rationale and support the Group’s business objectives, which may include the reduction or elimination of double taxation.  The Group will only enter into transactions which are fully justifiable in the event of scrutiny by the Group’s wider stakeholders.

Consideration is given to Arena’s corporate reputation, corporate and social responsibilities, when consulting tax initiatives, as well as the applicable legal and fiduciary duties of directors and employees of Arena. This forms part of the overall decision-making and risk assessment process.

Arena’s transfer prices are set in accordance with Internationally accepted standards such as the transfer pricing guidelines issued by the Organization of Economic Cooperation and Development (“OECD Guidelines”) and the transfer pricing rules, regulations and guidelines set by tax authorities of countries in which Arena operates.

Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities in order to support investment, employment and economic development. Where these exist and are applicable to our business, Arena seeks to apply them in the manner intended, taking external professional advice where necessary.

Level of risk Arena is prepared to accept for UK taxation

Arena considers reputation and corporate social responsibility as well as any financial impacts. The team takes into account the materiality of any item, as well as the costs of effective risk mitigation actions.

Prevention of unnecessary disputes is desired and appropriate and best achieved through:

  • Sound technical positions
  • Clear explanation of those positions
  • Thorough documentation of facts
  • Well established relationships with tax authorities
  • Strong compliance procedures ensuring accurate and complete tax returns.

Arena does not adopt extreme or aggressive interpretations of law which by their nature have associated high risks of failure or reputational damage.

Arena’s approach towards its dealings with HMRC

The Group will develop good working relationships and be fully open, honest and transparent in its dealings with HMRC in the UK and other tax authorities. The Group will cooperate fully with enquiries raised by tax authorities and will respond in a timely manner to requests for information. Arena will make fair and accurate disclosures in correspondence and returns, and respond to queries and information requests in a timely manner.

Arena will aim to foster an open and constructive relationship with tax authorities that is based on integrity, honesty and mutual respect. Arena is committed to proactive discussion to expedite settlement of tax matters.