Tax Strategy 1. Schroders will comply with its tax obligations worldwide and will only engage in reasonable tax planning that is aligned with commercial and economic activity. We will follow the terms of the UK’s Double Taxation Treaties and relevant OECD guidelines for international tax matters. 2. We will maintain an open and transparent relationship with the tax authorities in the key jurisdictions in which we operate. In the UK, Schroders was one of the first businesses to enter into a framework agreement with HMRC. Under this framework, we agreed to keep HMRC informed of business activities, results and key developments as they arise and proactively disclose issues, risks and uncertain tax positions, and we continue to be committed to conducting our tax affairs in this way. 3. We will utilise tax incentives or opportunities for obtaining tax efficiencies where these: – do not carry significant reputational risk or significant risk of damaging our relationship with the fiscal authorities in the key jurisdictions in which we operate, – are aligned with the intended policy objectives of the governments which introduced the incentives, – do not have a material adverse impact on “above the line” results, and – are aligned with business or operational objectives. 4. We will manage tax risk in such a way as to ensure that key risk areas are monitored and material risks minimized. 5. We will adhere to the CBI’s seven tax principles for UK business. 6. We will comply with the requirements of the UK’s Code of Practice on Taxation for UK Banks. 1 1 See http://www.cbi.org.uk/media-centre/news-articles/2013/05/seven-tax-principles-for-uk-business-proposed-by-cbi/.