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MICRO FOCUS INTERNATIONAL PLC and its subsidiaries Tax Strategy


This document sets out the Group’s strategy for managing its tax affairs. The document will be published externally, on an annual basis in accordance with UK legislation.


Overall responsibility for the Tax Strategy rests with the Board.

The detailed policies for implementing the Tax Strategy are set out in the Group’s Tax Policy document. Responsibility for updating and implementing the Tax Policy rests with the Chief Financial Officer.




The Group’s strategy with regards to tax is:

  1. to ensure the Group is fully compliant with its statutory and regulatory obligations - ensuring complete and accurate tax returns are filed and the correct amount of tax is paid on time;
  2. to manage its tax costs by ensuring that tax is considered when the group carries out significant transactions or reorganizations, and that appropriate steps are implemented, which accords with the Group’s long term business strategy and stakeholder expectations;
  3. to ensure the group utilizes statutory tax reliefs which are available to businesses generally (such as R&D tax credits or Patent/Innovation Box benefits).  With specific regard to tax reliefs made available to help mitigate the impact of the COVID-19 pandemic, the Group gives due consideration to its reputation and both corporate and social responsibilities in its decision making process;
  5. to ensure stakeholders have a comprehensive understanding of the Group’s tax position.

The Group’s tax strategy is fully consistent with the CBI’s tax principles for UK business (attached).

Further details are set out below.

Compliance and engagement with tax authorities



Tax planning

The Group is committed to managing its tax costs as part of its strategy to maximize total shareholder returns.

All tax planning undertaken must be driven by a business purpose or commercial rationale and support the Group’s business objectives, which may include the reduction or elimination of double taxation.  The Group will only enter into transactions which are fully justifiable in the event of scrutiny by the Group’s wider stakeholders.


Risk management

Tax risks will be managed in accordance with the Group’s risk management framework and procedures.  This includes the maintenance of a risk register which includes the material tax risks faced by the Group.


The Group will ensure that all decisions are taken at the appropriate level with appropriate supporting documentation.  As part of the decision-making process, due consideration will be given to the Group’s reputation and corporate and social responsibilities.

The Group accepts that certainty of tax treatment cannot be achieved in all circumstances (in the context of both compliance and transactions).  The precise amount of tax risk the Group is willing to bear will depend on the facts and circumstances relevant to the issue under consideration.  The level of tax risk, which the Group is exposed to overall, is considered as part of the review of the risk register and the level of provisions for tax exposures in the Group’s financial statements.

Stakeholder information

The Group’s financial reports, stakeholder presentations and other publicly-available documentation will provide stakeholders with a clear understanding of the Group’s tax position, including its Tax Strategy and governance processes as well as the financial position (effective tax rate, taxes paid and tax assets/liabilities).


Appendix 1: CBI Statement of tax principles


Intention of statement of principles



The objectives


Tax planning principles

  • UK businesses may respond to tax incentives and exemptions
  • UK businesses should interpret the relevant tax laws in a reasonable way consistent with a relationship of ‘co-operative compliance’ with HMRC

Transparency and reporting principles


Fri Jun 18 20:41:12 PDT 2021