Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 259 report information sustainability report Governance review review statements Annual Report 2022 ESG: Governance (continued) • our tax department comprises • our dealings with tax authorities are Tax governance, control and appropriately qualified in-house handled proactively, constructively and risk management transparently, in real-time where professionals who are subject to clear As a Globally Systemically Important Bank, standards including that they uphold our possible, our Group-wide risk and governance Tax Principles and follow our tax code of • we recognise that early resolution of our procedures are subject to continuous conduct, which is an integral part of how tax affairs is in everyone’s interest. We review and scrutiny. More details on our we operate, have ongoing engagement with tax approach to tax governance, control and authorities to discuss their inquiries and • our governance requires that suitably risk management can be found in our qualified people are involved in decisions material issues in relation to our tax Country Snapshot, the key highlights of related to tax, tax is fully taken into affairs, and we respond to feedback which include: account when making business from tax authorities, • our Board has ultimate responsibility for decisions and tax risk is identified, • where we face significant uncertainty in tax matters and the Board Audit assessed and kept under review, and relation to the application of tax law, we Committee oversees our approach • we have no tolerance for tax evasion and may seek to agree with the tax authority to tax, have well-established mechanisms for how the tax law should apply, • at Barclays, risks are identified and raising concerns about unethical or • where relevant we seek to reach managed through our ERMF, which unlawful behaviour through our agreement with tax authorities using supports the business in its aim to ‘Whistleblowing’ policy, which applies mechanisms available to all taxpayers embed effective risk management and a equally to tax matters. including Advance Pricing Agreements strong risk management culture. Under and Mutual Agreement Procedures to the ERMF risk, including tax risk is Stakeholder engagement and clearly establish in which territories our managed in accordance with a ‘three management of concerns profits should be taxed, lines of defence’ model, related to tax: • we engage with governments, tax • as part of the ‘first line of defence’ the Our reputation is very important to us and authorities and NGOs through public tax department identifies and manages we take our external stakeholders’ consultations and other discussions to tax risk by developing appropriate expectations into account when we make assist with the development of tax policy policies, standards and controls to apply decisions in relation to our tax affairs. More and the improvement of tax systems, across our organisation. Risk and details on our approach to stakeholder and maintain our transparency with Compliance comprise the ‘second line engagement and managing stakeholder these stakeholders; and of defence’, and Barclays Internal Audit concerns related to tax can be found in our are the ‘third line of defence’, and these • we cooperate with tax authorities Country Snapshot, and key highlights functions review, challenge and provide globally to reduce the scope for include: assurance to the Board in relation to the individuals and companies to evade tax, • we believe that it is important to be effectiveness of governance, risk and have met all of our 2022 information transparent in the disclosure of our tax management and controls including reporting obligations under the affairs both to tax authorities and those relating to tax risk, Common Reporting Standard and stakeholders more broadly, Foreign Account Tax Compliance Act. • we are subject to the Sarbanes-Oxley Act control requirements in relation to The BPLC Board Audit Committee is responsible for + financial statements disclosures considering the Group's tax strategy and overseeing compliance with the Group's Tax Principles. Please including those related to tax, refer to page 174 for details of BPLC Board Audit Committee oversight of tax related matters