UK Tax Strategy
Under Armour, Inc. and Subsidiaries - UK Tax Strategy
This UK Tax Strategy statement is published in compliance with Schedule 19 Finance Act 2016 for the year ending 31 December 2020. The following legal entities are subject to taxation in the UK, and covered by this statement.
• Under Armour UK Limited
• UA UK Retail Limited
Under Armour, Inc. and Subsidiaries’ (“Under Armour”) tax policy is to comply with all statutory regulations and full transparency to tax authorities. Under Armour manages the tax affairs of all legal entities, including those doing business in the UK, under Under Armour’s high standards of governance.
The ultimate responsibility for the tax strategy sits with the Board of Directors. Day to day responsibility is delegated to the Chief Financial Officer and Senior Director of Global Tax to manage tax risk through the Global Tax Department and through operational accounting functions of legal entities doing business in the UK.
Tax Risk Management
Under Armour recognizes there is some level of tax risk in the UK, as in all countries, due to complexity of taxes, including frequent changes in laws, and the subjectively of transfer pricing of goods, services and financing between Under Armour group companies in various jurisdictions.
Under Armour monitors proposed changes in UK tax legislation to identify its potential impact on the Company’s UK business, including seeking external professional opinions, and will realign its tax arrangements when necessary to comply with the tax regulations. In relation to intercompany transactions, Under Armour complies with the OECD guidelines and ensures that the transfer pricing policies respect arm’s length standards.
It is Under Armour’s policy to comply with all tax rules and regulations in the UK as well as the rest of the world, and to ensure tax planning is aligned with its business activities. Under Armour does not engage in tax planning strategies in which the business objectives do not support the position. Under Armour additionally considers the potential impact on Under Armour’s reputation, brand, corporate and social responsibilities for all tax planning.
UK Tax Authority - HMRC
Under Armour is in compliance with all required filings with HMRC. Under Armour does not currently have any ongoing inquires, audits or examinations with HMRC. Should HMRC have any inquires, audits or examinations in the future, Under Armour’s goal will be to establish and maintain a transparent and constructive relationship with HMRC. Under Armour will demonstrate ongoing compliance with tax legislation and if disagreements arise, Under Armour will seek to resolve the issues by mutual agreement with HMRC, where possible.