Approach to tax

For the financial year to 31 December 2023

Introduction

Omnicom is a global media company, subject to many legal systems. Our employees doing business internationally must comply with all applicable laws and regulations and uphold the standards provided in Omnicom’s Code of Business Conduct.

For commercial reasons Omnicom operates through a large number of legal entities in the UK, as part of a global organisation. The legal entity structure is therefore relatively complex and, combined with an increasingly complicated tax system, gives rise to some inherent tax risks.

We do not have a high appetite for risk but are prepared to accept risk where an arrangement furthers our commercial goals and complies with our management and governance procedures.

How we manage tax risks

In managing its tax risks, Omnicom ensures that key risk areas are identified, monitored, and material risks minimised. For this purpose, Omnicom reviews and improves its tax controls, processes and procedures on an on-going basis with a view to mitigating tax risks. Wherever possible, processes are automated, using relevant technology to improve efficiency and accuracy.

Omnicom aims to apply diligent professional care and judgement, including ensuring that all decisions are taken at an appropriate level and supported by documentation that evidences any judgements involved.

The Board and the global financial leadership provide strategic oversight over any significant tax matters, including tax planning. In addition, Omnicom uses reputable professional advisors for advice in areas where there is significant technical uncertainty.

Omnicom’s group tax function

Omnicom’s group tax function is responsible for ensuring that policies and procedures are in place, maintained and applied consistently across its UK group companies to manage and minimise material tax risks.

To achieve this, Omnicom’s group tax function delivers regular group tax training to ensure that personnel with tax responsibilities or whose business activities may have a tax impact, have a reasonable understanding of how tax risk is identified, reported and managed. In addition, Omnicom uses other internal procedures to ensure that tax is reviewed by senior financial individuals as part of the financial reporting sign-off on a regular basis.

Furthermore, Omnicom trains and supports all tax personnel in the group tax function to ensure that they have the skills, technical expertise and knowledge to effectively and accurately fulfil their tax responsibilities and perform to the best of their abilities, using advisors in areas of complexity and uncertainty.

Attitude to tax planning

Omnicom ensures that its tax planning is aligned with its business activities, with tax being one of the factors considered when making business decisions. Omnicom will, where it is responsible and appropriate to do so, take reasonable steps to reduce its tax liabilities as part of its financial responsibilities to shareholders. This means that Omnicom will claim all available allowances, deductions, reliefs, incentives, exemptions and credits where it is permissible by law to do so. Omnicom does not engage in or condone tax evasion or the facilitation of tax evasion in any form.

All tax planning is subject to a robust review both internally and externally.

Working with HMRC

Omnicom has developed and is committed to maintaining a strong working relationship with HMRC. Omnicom is also committed to being transparent with HMRC about its UK tax affairs.

Furthermore, Omnicom works constructively and transparently with HMRC to minimise the extent of disputes, and to achieve early agreement on disputed issues when they arise.

In this context, and in developing and strengthening its relationship with HMRC, Omnicom meets with HMRC on an annual basis to discuss its Annual Business Risk Review and any other significant areas of interest through face-to-face meetings where appropriate.

Compliance Statement

The publication of this strategy statement is regarded as satisfying the statutory obligation under Para 16(2), Schedule 19, Finance Act 2016 for all companies listed below.