Biogen’s Tax Strategy and its Application
Biogen is committed to high standards of corporate governance, transparency and responsibility. This document outlines Biogen’s global approach to taxation. The overall goal of Biogen’s global tax policy is to support its business by maintaining a sustainable tax rate while complying with tax law and regulations, and mitigating tax risks in the jurisdictions in which we operate.
Biogen’s global tax strategy applies to all of its controlled entities.1 This tax strategy and its underlying principles guide the decisions Biogen makes relating to corporate tax matters.
Tax Risk Management and Governance
Biogen’s tax arrangements, including in relation to intellectual property, are based on its commercial business and activities, and does not utilize low tax jurisdictions which are inconsistent with these commercial business activities. In structuring its business activities, Biogen considers tax laws, its intent and transfer pricing guidelines. Biogen applies the arm’s length standard of transfer pricing under the Organization for Economic Co-operation and Development and local country requirements to ensure its intercompany arrangements result in appropriate remuneration.
Biogen aims to use diligent care and judgement, including ensuring decisions are made on an appropriate level, supported by proper documentation and facts. Biogen does not rely on non-disclosure provisions in engagement with tax authorities or engage in activities with the sole purpose of tax avoidance.
Biogen employs experienced, qualified tax professionals who work closely with other Finance, Legal and Human Resources teams at Biogen. Biogen seeks advice and guidance from various experienced external advisors, including accounting firms and law firms in various jurisdictions on complex matters. Biogen also monitors compliance with relevant tax laws, regulations and guidance, as well as this policy, including maintaining communication and holding periodic meetings with external advisors on developments in tax laws, regulations and guidance.
Biogen’s internal tax governance structure is to have local country Finance teams report quarterly or as needed to the global tax team led by the chief tax executive who reports to Biogen’s Chief Financial Officer (CFO). Material tax compliance, risk and related matters are approved by the chief tax executive, CFO and the Audit Committee of Biogen’s Board of Directors, as well as communicated to Biogen’s independent auditors at least quarterly.
Biogen also abides by stringent internal controls. Tax-related controls are reviewed and assessed on a regular basis and require certain processes and documentation of review and approval. Financial internal controls, including tax controls, are also updated periodically to mitigate risk.
Biogen undertakes tax planning that aligns with its commercial business activities and reputation as a responsible corporate citizen. Biogen takes advantage of tax incentives, tax credits and related tax favorable deductions, where applicable, as well as relevant bilateral tax treaties aimed at avoiding double taxation. Biogen strives to ensure that any structure or transactions are done to support the business strategy, and, as such, all decisions will have a sound commercial rationale, will be compliant with tax laws and regulations, and will be considered in light of any impact such planning could have on Biogen’s external reputation. Biogen seeks appropriate clarification from external advisors and/or governmental authorities, wherever appropriate.
Dealings with Tax Authorities
Biogen is committed to the principles of openness and transparency with tax authorities. Biogen is committed to maintaining communication with tax authorities in an effort to mitigate disputes and risks.
1 This policy applies to all Biogen UK entities and its publication is regarded as satisfying the statutory obligation under paragraph 19(2), Schedule 19 of the UK Finance Act 2016 for all the Biogen UK entities.
Biogen-127309 Date of Preparation: January 2023