Time to fill this bad boy with great products like gadgets, electronics, housewares, gifts and other great offerings from Groupon Goods.
Introduction
GROUPON is a global
leader in local commerce, offering a vast mobile and online marketplace where
people discover and save on amazing things to do, see, eat and buy.
GROUPON’s goals are to
create long-term value for shareholders by connecting small businesses with
consumers and helping build vibrant communities and neighbourhoods in the
process, to be a great company with the highest ethical and legal standards and
to be a great place to work. At GROUPON, we are guided by the following
principles – Do the right thing; Follow the law; Act ethically; Treat people
properly; and Speak up. Our approach to tax follows the same principles.
GROUPON
Tax Management Principles and Strategy
GROUPON is committed
to complying with tax laws in a responsible manner. We pay many different types
of direct and indirect taxes, including corporate income taxes, sales taxes,
VAT, customs duties, employment taxes and other taxes. GROUPON’s UK operation continues
to be one of the largest and most important of our international businesses and
has paid a significant amount of tax over the years.
The taxes we pay and
collect are a part of our economic contribution to the countries in which we
operate. We recognise that the taxes we collect and pay are part of our social
responsibility; therefore, we pay all taxes due in each country while also
availing ourselves of available deductions, credits and incentives. We enter
into structures that supports our business and reflects commercial and economic
activity and do not engage in artificial tax transactions. We comply with
relevant tax laws, and we try to minimise the risk of uncertainty or disputes.
We strive to establish open and constructive relationships with tax
authorities. We work collaboratively wherever possible with tax authorities to
resolve disputes and to achieve early agreement and certainty. We support the
principle of greater transparency that increases understanding of tax systems
and the building of public trust. We enter into transactions between GROUPON
group companies on an arm’s-length basis and in accordance with current OECD
principles. Tax incentives and exemptions are sometimes implemented by
governments and fiscal authorities in order to support investment, employment
and economic development. We support initiatives to simplify and improve tax
regimes to encourage investment and economic growth, and where we adopt such
initiatives, we apply them in the manner intended.
GROUPON tax team has
responsibility for managing the taxation affairs of our legal entities and
mitigating overall tax risk. GROUPON recognises that in some cases, there can
be complex laws and interactions of rules that may require support in
determining the appropriate tax treatment of specific items. In this way,
GROUPON manages its tax risks by relying on the technical guidance of its
internal tax team and where required, its external advisers.
We follow GROUPON’s
risk management system as part of our internal control processes. GROUPON, Inc.
is a public company that files financial statements with the United States
Securities and Exchange Commission; thus, it is required under the Sarbanes
Oxley Act (“SOX”) to establish internal controls and procedures applicable to
financial reporting, to demonstrate its ongoing effectiveness and to
appropriately document adherence to those controls. GROUPON has a team of Internal Audit personnel centrally located in the GROUPON Chicago
office that assesses the efficiency, effectiveness, sustainability, monitoring
and alignment of internal controls. The Tax SOX controls cover all key
responsibilities of the Tax function, including such items as transfer pricing,
domestic and international compliance, tax provision, indirect taxes, uncertain
tax positions, documentation of tax positions and financial reporting.
We identify, assess
and manage tax risks and account for them appropriately. We implement risk
management measures including controls over compliance processes and monitor
their effectiveness. The VP of tax owns and implements our approach to tax.
The VP of tax is also responsible for ensuring that policies and procedures
that support the approach are in place, maintained and applied consistently
around the world, and that the global tax team has the skills and experience to
implement the approach appropriately. We utilise the local offices of the Big 4
public accounting firms and/or global law firms as necessary to ensure
understanding of local laws and to facilitate compliance. These firms assist in
preparing direct and indirect local tax returns, provision computations,
transaction consulting and any other assistance as needed. We analyse each
situation carefully to determine how best to comply with all applicable laws
and regulations while optimising GROUPON’s tax position. Our approach to tax is
applicable across the GROUPON group.
GROUPON has
established an open, transparent and constructive relationship with HMRC to
discuss significant transactions impacting the UK in current, future and prior
periods. We continue to adopt an open and collaborative approach with HMRC.
This statement is
published in accordance with GROUPON’s duty under paragraph 19 of Schedule 19
to the UK Finance Act 2016. We review and update this annually. It was last
published on 14 April 2022 in respect of the year ending 31 December 2022.