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Tax Strategy Summary 2021 HMSHost Group

Tax relation management

HMSHost operates worldwide and therefore encounters different tax systems, tax rules & regulations, and tax methods. However, HMSHost uses a clear approach of being transparent when it comes to its relationships with the different tax authorities. Key aspects of this approach are as follows:

I.   HMSHost commits to being open and transparent with the tax authorities around the globe; and

II.  HMSHost commits to fully disclosing all relevant information required by local tax authorities to conduct a review
     and tax audit, as required by local tax laws.

The HMSHost Tax Teams, with  the cooperation of  local management and  third party (local) tax counsels,  set the pace to fulfill these commitments on a day-to-day basis.



Tax planning

As tax is a part of every business, tax effects relating to the business activities are being reviewed by the HMSHost Tax Teams. These efforts are often supported by third party outside tax counsels. Pursuant to the outcome of these tax reviews, tax planning proposals are discussed within the HMSHost groups such as the Business Strategy, Commercial, Legal and other groups, before a decision is made. Core drivers within any tax planning proposal are:

I.   HMSHost refrains from knowingly using or implementing structures or arrangements which may lead to tax evasion.
     However, to ensure maximum benefit for our growing business and our shareholders, we are not excluding any tax
     incentives and exemptions that are available pursuant to local and international laws, within the group;

II.  Tax planning opportunities are considered within the parameters of national and (inter-) national (tax) laws and to
     comply with both the spirit and the letter of the law in tax matters;

III. Tax planning opportunities are considered in compliance with the Group‘s Code of Ethical Conduct; and

IV. HMSHost commits to paying taxes in the countries where value is created, by following the “arm’s length principle”
     as determined in the OECD Transfer Pricing Guidelines.



Tax risk attitude

HMSHost commits to comply fully with all applicable tax obligations, while maintaining and protecting value for its  shareholders.

HMSHost commits to minimize passive risks (compliance and reporting risks) by implementing proper procedures and internal controls and reviewing them periodically. Furthermore, HMSHost continues to improve existing procedures and controls. The Tax Teams have a strong collaboration with the division Chief Financial Officers (“CFO”). These CFOs are informed on a regular basis about  the events that  may have tax implications for the group or for one of our local entities; and

I.   HMSHost commits to minimize active risks (transactional risks) through the expertise of the in-house Tax Teams and
     through liaising closely with external tax counsels as needed.

II.  Where HMSHost discovers inconsistencies in tax compliance processes, HMSHost seeks to resolve such issues as
     soon as possible by either discussing these inconsistencies with the local tax authorities, or, if possible, resolve
     such issues internally.



Tax governance

Accountability for all taxes ultimately lies with the HMSHost CFOs. However, responsibility for all taxes lies with the Board of Directors of each separate entity or business. Furthermore, day-to-day taxation accountabilities lie with the Tax Teams, unless an HMSHost Policy determines otherwise. Furthermore, the determination and implementation of the HMSHost Tax Strategy and Tax Policies lies with the Tax Teams. The Tax Teams are responsible for the determination and implementation of Tax Policies in all the operating regions.  The HMSHost Tax Strategy follows the business activities and not the other way around, meaning that tax is typically not a driver. The Tax Teams are responsible for establishing governance systems and controls that enable us to comply with the following commitments:

I.   HMSHost strives to comply with all its tax filing, tax reporting and tax payment obligations worldwide;

II.  HMSHost is committed to be true and transparent with the tax authorities worldwide and to work collaborative
     wherever possible to solve any arising tax issues; and

III.  In areas in which it turns out that we have a different point of view with that of  the tax authorities, HMSHost strives
      to come to an understanding and agreement or solution in an efficient manner.

NOTE: The above document, published by HMSHost group in January 2021, applies to the whole HMSHost group and complies with its obligation under the UK Schedule 19 Finance Act 2016 to publish its tax strategy for the year ending 2017 and forward. The 2021 Tax Strategy version supersedes all previous versions.