OUR APPROACH TO TAX
Introduction
Royal Caribbean Group (“RCCL”) is a publicly traded cruise line company with worldwide operations that responsibly delivers world-class and memorable vacations to guests worldwide. RCCL operates three brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. In addition, we have a joint venture interest in TUI Cruises and Hapag-Lloyd Cruises. In the United Kingdom (“UK”), Silversea Cruises business presence is composed of three UK legal entities: Silversea Cruises (Europe), Ltd., Silversea (UK), Ltd., and Silversea Holding (UK) Ltd. referred to as (“SS UK”)
Our Tax Principles
SS UK is committed to being a responsible global citizen. We follow global rules, regulations, and guidelines in accordance with our Code of Business Conduct and Ethics and expect our advisors, employees, and other parties to do the same.
Our approach to tax is summarized by our tax principles, which are approved by the Board of Directors and are closely aligned with the group’s core values and business strategy. SS UK will continue to:
- Comply with all relevant laws and regulations.
- Consider tax in all major or complex business decisions.
- Meet all legal requirements and make all appropriate tax returns and payments.
- Comply with appropriate tax controls and processes and ensure sufficient Board oversight of this compliance where appropriate.
- Utilize incentives and reliefs to minimize business tax costs consistent with the UK government’s policy objectives.
Our tax risk management and governance
SS UK is risk-averse, and we adopt a conservative approach as regards tax matters.
To ensure that we effectively comply with our UK tax requirements, SS UK relies on a set of processes and controls that will regularly be reviewed and maintained for the purposes of Senior Accounting Officer (SAO)¹ compliance.
RCCL is committed to complying with all relevant laws and regulations in all jurisdictions where the group operates, and with SS UK will be no different. Tax Management is performed through the RCCL Corporate Tax Department and in constant collaboration with the SS UK business and finance department to provide the guidance and advice needed to ensure compliance with tax laws and regulations.
At a global level, RCCL’s corporate tax department is overseen by the RCCL Audit Committee of the Board of Directors. The Vice President of Global Tax is responsible for implementing our approach to tax. The team is responsible for ensuring that policies and procedures supporting the approach are in place and that the tax group has the required skills and experience.
Our approach to tax planning
Tax planning opportunities must have a clear commercial rationale, be approved by the Board, and be evaluated with current tax rules in mind while taking the legislator’s intention into account. Where there is uncertainty about applying or interpreting the tax laws, appropriate written advice evidencing the facts, risks, and conclusions will be obtained from third-party advisers to support the decision-making process. SS UK does not engage in aggressive tax planning and does not enter transactions for the sole purpose of gaining a tax benefit.
Our relationship with HMRC
SS UK is committed to engaging transparently and proactively with HMRC. The company’s UK tax affairs and past and proposed operations are discussed in an annual meeting with HMRC. Furthermore, the company maintains ongoing communication with HMRC to discuss and conclude on areas where the application of legislation to our facts is uncertain, ensure compliance with UK tax laws and regulations, and communicate changes to our business and tax affairs in advance to HMRC.