OUR APPROACH TO TAX

Introduction

Royal Caribbean Cruises Ltd. (“RCCL”) is a publicly traded cruise line company with worldwide operations. As the world’s second largest cruise company, RCCL operates the following brands: Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and, Silversea Cruises. In addition, we have joint venture interests in Pullmantur Cruises and TUI Cruises. In the United Kingdom (“UK”), Silversea Cruises business presence is composed of two UK legal entities: Silversea Cruises (Europe), Ltd. and Silversea (UK), Ltd. referred to as (“SS UK”).
 

Our Tax Principles

Our approach to tax is summarized by our tax principles. In particular, 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 tax payments.

  • Comply with appropriate tax controls and processes and ensure there is sufficient Board oversight into this compliance where appropriate.

  • Utilize incentives and reliefs to minimize business tax costs in a manner which is consistent with the UK government’s policy objectives.

 

Our tax risk management and governance

As a member of RCCL group, the board of directors of SS UK and its management team recognizes the importance of maintaining robust tax compliance processes and considers it key to managing tax risk. Management is required to regularly discuss tax matters with the RCCL Corporate Tax Department and tax plays an important role in Board business decisions.

SS UK is risk-averse and will adopt a conservative approach towards tax matters.

To ensure that we effectively comply with our UK tax requirements, SS UK rely 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 this will be no different. Tax Management is performed through the RCCL Corporate Tax Department and in collaboration with the SS UK business and finance department to provide the guidance and advice needed to ensure compliance with tax laws and regulations.

Our approach to tax planning

Tax planning opportunities must be approved by the Board and are evaluated with current tax rules in mind while taking the legislator’s intention into account. Where there is uncertainty as to the application or interpretation of 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 into transactions for the sole purpose of gaining a tax benefit.

Our relationship with HMRC

SS UK is committed to engaging in a transparent and proactive manner with HMRC, following the transparent and proactive relation RCCL has already constructed. RCCL UK tax affairs, past and proposed operations are usually discussed in an annual meeting with HMRC, and with the acquisition of the Silversea Group, the SS UK operations will be part of the discussions where relevant.
 

1The Senior Accounting Officer (SAO) is the individual who is responsible for certifying to HMRC that our UK incorporated companies have appropriate tax compliance arrangements.

This document is published in accordance with paragraphs 19(2) and 22(2) of Schedule 19 of the Finance Act 2016 and relates to the accounting period ended 31 December 2019.