For years, Sara worked in a hospital, making care possible for others. Now, after being diagnosed with breast cancer, she was the one in need of care.
Parexel is committed to the highest standards of governance, including transparent financial and tax reporting. We believe that pursuing a transparent tax policy is a part of doing business. The interests of all relevant stakeholders, which include investors, employees, governments, suppliers and business partners – are balanced with our tax strategy.
Our Approach to Governance Arrangements and Risk Management
Parexel’s Chief Financial Officer and Executive Vice President, Tax & Treasury are responsible for our tax strategy. The Chief Financial Officer and Executive Vice President, Tax & Treasury are also responsible for maintaining and updating this tax strategy and for ensuring that procedures supporting the tax strategy are in place, maintained, and used consistently throughout the business.
The tax function at Parexel is comprised of knowledgeable and experienced staff. The tax function is in regular contact with Parexel’s business units and senior management, which includes providing guidance on the tax implications of particular transactions. As noted above, the tax function leverages supporting procedures to identify, assess, report and mitigate tax risks appropriately.
In addition, Parexel engages accredited tax advisers for all legal entities within its business. This includes professional support in relation to tax compliance and reporting, which is part of Parexel’s business controls testing environment.
Tax Planning and Acceptable Tax Risk
Parexel reports and pays taxes in the jurisdictions in which it operates in accordance with all relevant tax laws and regulations.
Transactions must be driven by a legitimate business purpose and the tax impact of a transaction is considered when assessing the transaction. In addition, consideration is also given to the reputation of Parexel and to its corporate and social responsibilities. In addition, Parexel will seek third party advice from external advisors for certain complex transactions. Parexel views accurate assessment of tax obligations as important to the integrity of its financial statements, as well as to its reputation and operational effectiveness. Tax strategies implemented should be likely to be upheld upon review based on relevant tax laws and regulations.
Parexel employees are required to file all required tax-relevant filings with the appropriate tax authorities in a timely and complete manner. In order to better assure timeliness and completeness, tax filings are monitored through Parexel’s comprehensive tax control framework, which is regularly reviewed and updated. Parexel has a low tax risk tolerance, including errors in tax processes.
Relationship with Tax Authorities
Parexel seeks to have an open and constructive relationship with tax authorities, including the UK’s tax authorities (i.e., Her Majesty’s Revenue & Customs). Parexel intends to be clear on all aspects pertaining to its tax filing position. In addition, if there are complexities or uncertainties, Parexel seeks upfront certainty with the relevant tax authorities.
This tax strategy applies to the accounting period ended December 31, 2023. Parexel adopts this tax strategy for its global group and considers this published on behalf of its UK entities. Accordingly, Parexel regards this publication as complying with its duties under 19(2) Schedule 19 of the Finance Act 2016.