In compliance with section 161 and section 19(2) of schedule 19 Finance Act 2016, the company is publishing its tax strategy for the year ending 31 December 2023. This strategy applies to InterSystems UK, which is a UK branch of InterSystems Corporation, a US-based company headquartered in Cambridge, Massachusetts, USA.

InterSystems UK has a strong focus on corporate responsibility, including tax administration and compliance. Our overall tax strategy is to:

• Comply with appropriate tax processes and ensure there is management oversight of this compliance.
• Meet legal requirements and execute all required tax returns and tax payments, in a timely manner.
• Seek to utilize available tax reliefs and incentives where available in a manner which is consistent with the government’s policy objectives.

Risk Management and Governance Arrangements

We want our tax affairs to be transparent and compliant with tax legislation and recognize that managing tax compliance can be complex. Our tax affairs are managed by trained finance professionals located in the UK, supported by parent company management in the US. Parent company management are kept informed on a regular basis of all significant decisions relating to tax strategy and take into consideration the company’s approach to ethical business practice when considering questions of tax strategy and corporate structure.

The UK business operates through the sale of software and services to UK customers. The company ensures that a culture of understanding tax implications is projected through the local branch. This aims to reduce the level of tax risk arising from its operations by ensuring reasonable care is applied to all processes that affect tax compliance.

We keep under review how we meet our tax obligations, by seeking external tax advice for areas of potential risk in relation to UK tax compliance.

Tax Planning

We undertake tax planning as part of our overall business strategy. Professional advice is sought on a transactional basis, as needed, with the depth of such advice being driven by our assessment of the risk presented by each opportunity. We consider such advice when forming decisions which will affect the tax profile of the company, alongside our business strategy.

We do not undertake aggressive tax planning, the sole purpose for which would be obtaining a tax advantage. We have a responsibility to minimize our tax risk and our exposure to negative publicity through non-compliance.

Attitude Towards Risk

Management sees compliance with tax legislation as key to managing our tax risk. We understand the importance of tax in the wider context of business decisions and have processes in place to ensure tax is considered as part of our decision-making process. We consider tax risk in the UK to encompass corporation taxes, VAT, and payroll taxes, and seek compliance in all areas by following a prudent approach in each area, preferring long-term certainty in relation to compliance as opposed to short-term minimization of taxes.

We have relationships with professional advisers that allow us to seek expert advice on specialist areas of tax. Our approach is to ensure we are compliant and understand our responsibilities with regards to tax, rather than looking for ways to aggressively avoid payment of tax.

Relationship with HM Revenue & Customs (HMRC)

The company aims to maintain transparent and constructive relationships to comply fully with its obligations and to uphold its reputation as a responsible taxpayer. The company will share and disclose information as requested, ensuring full transparency in our relationship with HMRC.