Our approach to tax. Contributions to tax revenues. Our tax policy. $2.4bn. Collection of taxes. Total taxes paid

Transcription

1 Our approach to tax The Group s approach to tax is governed by our tax strategy which has been approved by the Board. Under our tax strategy, we manage our tax affairs in alignment with our commercial strategy, having regard to building long term shareholder value and to maintaining our reputation as a responsible taxpayer with tax authorities and regulators. Our tax team ensures that our tax policy framework is fit for purpose and a robust review and approval process operates. Our tax policy We have no tolerance for breaches of regulatory, legal and tax compliance requirements in any jurisdiction. Standard Chartered complies with tax laws and pays all taxes legally due in all jurisdictions in which we operate. We operate in accordance with our values and our Brand Promise Here for good. In the UK, Standard Chartered has re-adopted The Code of Practice on Taxation for Banks, which commits us to follow the spirit as well as the letter of the law in relation to tax planning. We manage our relationships with tax authorities and regulators in a transparent, professional and constructive manner. We routinely seek feedback from Her Majesty s Revenue and Customs on our relationship with them and have shared our tax policy with them. Standard Chartered contributes to the development of sustainable tax policy and legislation, typically through direct engagement with tax authorities, public consultation processes or in our role as a member of an industry group. We support tax authorities in developing their capabilities. Across our markets, we operate as one bank. We are a global business and have substantial commercial operations in both high and low tax jurisdictions. Transactions between group entities are priced on an arm s length basis, reflecting the economic reality of the transaction in accordance with international standards and local government law. We do not artificially divert profits to low tax jurisdictions. Tax is considered as part of relevant business decisions and we only engage in tax planning that supports a genuine business purpose and commercial activity. We do not enter into transactions whose sole purpose is to minimise or reduce tax cost. Similarly, we do not promote tax avoidance products to our customers. We are committed to combating financial crime, including money laundering arising from tax evasion. In support of this objective, we continue to review, and where appropriate enhance, many aspects of our existing approach to anti-money laundering compliance. Contributions to tax revenues Paying taxes is one of the many ways we contribute to sustainable growth in local economies. Standard Chartered paid corporate income taxes of $1,563 million in In addition, we paid other taxes of $829 million in This includes the UK bank levy, $180 million, which is calculated on our global balance sheet, although the majority relates to liabilities owed to counterparties in our major markets outside the UK. Total taxes paid $1,563m Corporate Income Tax $245m Employer Payroll Taxes $183m Withholding Taxes $180m UK Bank Levy $90m Irrecoverable VAT $131m Other Taxes Collection of taxes $2.4bn As well as the taxes borne and paid by Standard Chartered, we also play an important role on behalf of governments as collector of taxes in relation to payments made to customers, clients and employees. In 2013, we collected $1,433 million of employment and other taxes on behalf of governments.

2 by Country Disclosure Year ended 31 December 2013 In accordance with the Capital Requirements (Country-by-Country Reporting) Regulations 2013, which are effective from 1 January 2014, set out below and in the following table listing business entities and business activities is the country-bycounty information in respect of the year ended 31 December Also included are further disclosures setting out additional taxes paid in the period. The regulations require the disclosure of corporation tax paid. Tax on profits is paid across multiple periods and losses in earlier periods may be offset against profits for later periods. Furthermore, taxable profits may differ from accounting profits where tax laws treat some items differently. Accordingly, the amount of tax paid in a year in any jurisdiction, may not be directly comparable to the accounting profit for that year. The following financial results, including taxes paid and public subsidies received, are rounded to the nearest $1 million. Country Number of Employees Turnover Pre-Tax Profit or Loss Corporation Tax Paid Employer Payroll Taxes Withholding Taxes Irrecoverable VAT Other Taxes (including UK Bank Levy) Public Subsidies Received $million $million $million $million $million $million $million $million China 8,581 1, Hong Kong 1 6,562 3,132 1, Macau Taiwan 4, Greater China subtotal 19,201 4,688 2, Australia Brunei Indonesia 3, Malaysia 7, Philippines Singapore 7,795 2, Thailand 2, Vietnam ASEAN subtotal 21,888 4,201 1, Japan Korea 6,229 1,614 (873) North East Asia subtotal 6,438 1,689 (860) Bangladesh 1, India 18,441 1, Nepal Sri Lanka South Asia subtotal 21,292 1,960 1, Bahrain Jordan Lebanon (3) Oman Pakistan 4, Qatar Saudi Arabia UAE 2,565 1, MENAP subtotal 8,229 1, Hong Kong includes the results of 15 entities which were incorporated in the Marshall Islands but which are managed and controlled in Hong Kong.

3 Number of Employees Turnover Pre-Tax Profit or Loss Corporation Tax Paid Employer Payroll Taxes Withholding Taxes Irrecoverable VAT Other Taxes (including UK Bank Levy) Public Subsidies Received $million $million $million $million $million $million $million $million Botswana Cameroon Côte d'ivoire Gambia Ghana 1, Kenya 1, Mauritius Nigeria Sierra Leone South Africa (21) Tanzania Uganda Zambia Zimbabwe Africa subtotal 7,929 1, Austria Falkland Islands France Germany Guernsey Ireland Isle of Man Italy Jersey Luxembourg 3 - (1) Netherlands Sweden Switzerland (18) Turkey UK 2, 3 1,751 1,564 1,860 (22) Europe subtotal 2,271 2,093 2,093 (4) Brazil Canada Caymans 12 - (3) US Americas subtotal 1, Group Adjustments 5-5 (1,770) Total 6 88,257 18,777 6,064 1, UK includes the results of 4 entities which were incorporated in the Netherlands and 1 entity incorporated in the Isle of Man. These are managed and controlled in the UK. 3. UK Pre-Tax Profit or Loss includes $1,680 million intra-group dividends received in the UK which are non-taxable under UK tax law. 4. US includes the results of an entity in the Bahamas which is managed and controlled in the US. 5. Group adjustments to Pre-Tax Profit or Loss of $1,770 million includes the $1,680 million intra-group dividends received in the UK. 6. For countries (Angola, Cook Islands, Samoa, British Virgin Islands and Peru) where entities have insignificant activity and financial results, they are not included in the above table but the relevant entities are included in the schedule of and Business Activities.

4 by Country Disclosure Year ended 31 December 2013 Country Greater China China Hong Kong Inner Mongolia Helingeer Standard Chartered Village Bank Limited, SCL Consulting (Shanghai) Co. Ltd, Standard Chartered Corporate Advisory Co. Ltd, Scope International (China) Co., Ltd., Standard Chartered Bank (China) Limited, Shenzhen PrimeCredit Gerent Guarantee Company Limited, Shenzhen PrimeCredit Limited, Standard Chartered Trading (Shanghai) Limited Standard Chartered Bank (Hong Kong) Limited, Double Wings Limited, Grimes Golden Limited, Horsford Nominees Limited, Kozagi Limited, Larne Limited, Leopard Hong Kong Limited, Marina Amaryllis Shipping Limited, Marina Amethyst Shipping Limited, Marina Ametrine Shipping Limited, Marina Angelite Shipping Limited, Marina Beryl Shipping Limited, Marina Carnelian Shipping Limited, Marina Emerald Shipping Limited, Marina Hazel Shipping Limited, Marina Honor Shipping Limited, Marina Ilex Shipping Limited, Marina Iridot Shipping Limited, Marina Kunzite Shipping Limited, Marina Leasing Limited, Marina Moonstone Shipping Limited, Marina Peridot Shipping Limited, Marina Ruby Shipping Limited, Marina Sapphire Shipping Limited, Marina Splendor Shipping Limited, Marina Tourmaline Shipping Limited, Prime Financial Limited, PrimeCredit Limited, S C Learning Limited, Standard Chartered Asia Limited, Standard Chartered Global Trading Investments Limited, Standard Chartered Investment Services Limited, Standard Chartered Leasing Group Limited, Standard Chartered PF Real Estate (Hong Kong) Limited, Standard Chartered Private Equity Limited, Standard Chartered Private Equity Managers (Hong Kong) Limited, Standard Chartered Securities (Hong Kong) Limited, Standard Chartered Sherwood (HK) Limited, Standard Chartered Trade Support (HK) Limited, GE Capital (Hong Kong) Limited, Standard Chartered Trust (Hong Kong) Limited, Union Town Limited and Victoria Partnership consulting services, shared service centre and corporate advisory services holding company, nominees services and leasing business Macau Standard Chartered Bank Macau Taiwan ASEAN Standard Chartered Bank (Taiwan) Limited, Ying Ji Li Asset Management Company Limited, Standard Chartered Life Insurance Agency Company and Taiwan Standard Chartered Insurance Agency Company insurance, and asset management Australia SC Australia Investments Pty Ltd, Gryphon Partners Advisory Pty Ltd, Standard Chartered Grindlays Pty Limited and Standard Chartered Bank Australia, Stanchart (Australia) Holdings Pty Ltd and investment/asset management Cook Islands Standard Chartered Equitor Group Limited Financial services Brunei Darussalam Indonesia Malaysia Marshall Islands Philippines Samoa Standard Chartered Finance (Brunei) Bhd, and Standard Chartered Bank Brunei Standard Chartered Bank Indonesia, PT Standard Chartered Securities Indonesia and PT. Price Solutions Indonesia Standard Chartered Bank Malaysia Berhad, Amphissa Corporation Sdn Bhd, Cartaban (Malaya) Nominees Sdn Berhad, Cartaban Nominees (Asing) Sdn Bhd, Cartaban Nominees (Tempatan) Sdn Bhd, Golden Maestro Sdn Bhd, IT-365 Malaysia Sdn Bhd, Marina Morganite Shipping Limited, Marina Morganite Shipping Limited, Marina Tanzanite Shipping Limited, Pembroke Leasing (Labuan) 2 Berhad, Pembroke Leasing (Labuan) 3 Berhad, Pembroke Leasing (Labuan) Pte Limited, Popular Ambience Sdn Bhd, Price Solutions Sdn Bhd, Resolution Alliance Sdn Bhd, SCBMB Trustee Berhad, Scope International (M) Sdn Bhd and Standard Chartered Saadiq Berhad Marina Aventurine Shipping Limited, Marina Celsie Shipping Limited, Marina Jessamine Shipping Limited, Marina Lilac Shipping Limited, Marina Pissenlet Shipping Limited, Marina Alysse Shipping Limited, Marina Buxus Shipping Limited, Marina Amandier Shipping Limited, Marina Ambroisee Shipping Limited, Marina Angelica Shipping Limited, Marina Dahlia Shipping Limited, Marina Dittany Shipping Limited, Marina Remora Shipping Limited, Marina Lolite Shipping Limited and Marina Dorado Shipping Limited Price Solutions Philippines, Inc., Assurance Solutions Insurance Agency Inc. and Standard Chartered Bank Philippines Standard Chartered Nominees (Western Samoa) Limited and Westwood Limited shared service centre, and Investment management Leasing business Nominees services and Investment management

5 Singapore Thailand Standard Chartered Bank Singapore, Standard Chartered Bank (Singapore) Limited, Marina Adella Shipping Pte. Ltd., Marina Aquata Shipping Pte. Ltd., Marina Ariel Shipping Pte. Ltd., Marina Aruana Shipping Pte. Ltd., Marina Cobia Shipping Pte. Ltd., Marina Fatmarini Shipping Pte. Ltd., Marina Frabandari Shipping Pte. Ltd., Marina Gerbera Shipping Pte. Ltd., Marina Opah Shipping Pte. Ltd., Marina Partawati Shipping Pte. Ltd., Marina Poise Shipping Pte. Ltd., Price Solutions Singapore Pte. Ltd., Prime Financial Holdings Limited, Raffles Nominees (Pte.) Limited, SC2 Investments (Singapore) Private Limited, SCM Real Estate (Singapore) Private Limited, SCTS Capital Pte. Ltd, SCTS Management Pte. Ltd., SG Motor Loans Pte. Ltd., Standard Chartered (1996) Limited, Standard Chartered (2000) Limited, Standard Chartered Holdings (Singapore) Private Limited, Standard Chartered IL&FS Management (Singapore) Pte. Limited, Standard Chartered Investments (Singapore) Private Limited, Standard Chartered Nominees (Singapore) Pte Ltd, Standard Chartered PF Managers Pte. Limited, Standard Chartered Private Equity (Singapore) Pte. Ltd, Standard Chartered Private Equity Managers (Singapore) Pte. Ltd, Standard Chartered Real Estate Investment Holdings (Singapore) Private Limited, Standard Chartered Securities (Singapore) Pte. Limited and Standard Chartered Trust (Singapore) Limited Standard Chartered (Thai) Asset Management Co. Ltd, Standard Chartered Bank (Thai) Public Company Limited, Thai Exclusive Leasing Company Limited and Standard Chartered (Thailand) Company Limited investment/asset management, Leasing business and nominee services and asset management Vietnam Standard Chartered Bank (Vietnam) Limited North East Asia Japan Standard Chartered Bank Japan Korea Standard Chartered Bank Korea Limited, PF Financial Money- Lending Korea Limited, Standard Chartered Capital (Korea) Company Limited, Standard Chartered Securities Korea Limited, Standard Chartered Korea Limited, Standard Chartered Fund Services Korea Limited, First Home Loan No.6 Limited, First Home Loan No.7 Limited, First Home Loan No.8 Limited, First Home Loan No.9 Limited, First Home Loan No.5 Limited, Standard Chartered Savings Bank Korea Co. Ltd, Standard Chartered Private Equity Managers Korea Limited, Standard Chartered Private Equity Korea II and Resolution Alliance Korea Ltd South Asia Bangladesh Standard Chartered Bank Bangladesh India Standard Chartered Bank India, Standard Chartered Private Equity Advisory (India) Private Limited, Standard Chartered (India) Wealth Advisory Services Private Limited, Standard Chartered Finance Limited, Scope International Private Limited, Standard Chartered Investments and Loans (India) Limited, Standard Chartered Securities (India) Limited and St Helen's Nominees India Private Limited Investment management, nominees services and shared service centre Nepal Standard Chartered Bank Nepal Limited Sri Lanka Standard Chartered Bank Sri Lanka MENAP Bahrain Standard Chartered Bank Bahrain Jordan Standard Chartered Bank Jordan Lebanon Standard Chartered Metropolitan Holdings SAL and Standard Chartered Bank SAL Oman Standard Chartered Bank, Oman Pakistan Price Solution Pakistan (Private) Limited, Standard Chartered Leasing Limited, Standard Chartered Modaraba, Standard Chartered Services of Pakistan (Private) Limited and Standard Chartered Bank (Pakistan) Limited Qatar Standard Chartered Bank Qatar Saudi Arabia Standard Chartered Capital Saudi Arabia (SCSA) UAE Standard Chartered Bank UAE

6 Africa Angola Standard Chartered Bank Angola S.A. Botswana Standard Chartered Bank Botswana Insurance Agency (Proprietary) Limited, Standard Chartered Bank Botswana Investment Services (Pty) Limited, Standard Chartered Bank Botswana Limited and Standard Chartered Botswana Nominees (Proprietary) Limited Cameroon Standard Chartered Bank Cameroon S.A Côte d'ivoire Standard Chartered Bank Cote d'ivoire SA Gambia Standard Chartered Bank Gambia Limited Ghana Kenya Mauritius Nigeria Standard Chartered Bank Ghana Limited and Standard Chartered Ghana Nominees Limited Standard Chartered Bank Kenya Limited, Standard Chartered Financial Services Limited, Standard Chartered Kenya Nominees Limited, Standard Chartered Securities (Kenya) Limited, Standard Chartered Management Services Limited and Standard Chartered Investment Services Limited Standard Chartered Bank (Mauritius) Limited, Merlion India Fund I Limited, Merlion India Fund II Limited, Standard Chartered Private Equity (Mauritius) Limited, Standard Chartered Private Equity (Mauritius) II Limited, SCIH International Limited, Standard Chartered Financial Holdings, Standard Chartered Private Equity (Mauritius) lll Limited, Subcontinental Equities Limited and Merlion India Managers Limited Standard Chartered Bank Nigeria Limited, Standard Chartered Nominees (Nigeria) Limited, Cherroots Nigeria Limited and Standard Chartered Securities (Nigeria) Limited and shared service centre and asset management nominees services Sierra Leone Standard Chartered Bank Sierra Leone Limited South Africa Tanzania Standard Chartered Securities (South Africa) (Proprietary) Limited, CMB Nominees Proprietary Limited, Standard Chartered Nominees, South Africa Proprietary Limited (RF) and Standard Chartered Bank South Africa Standard Chartered Bank Tanzania Limited, Stanchart Forex Bureau Limited and Standard Chartered Tanzania Nominees Limited Uganda Standard Chartered Bank Uganda Limited Zambia Zimbabwe Europe Standard Chartered Bank Zambia Plc, Standard Chartered Zambia Nominees Limited and Standard Chartered Zambia Securities Services Nominees Limited Standard Chartered Bank Zimbabwe Limited, Standard Chartered Asset Management Limited and Standard Chartered Nominees Zimbabwe Limited nominees services nominees services Austria Standard Chartered Bank Austria Falkland Islands Standard Chartered Bank Falklands France Standard Chartered Bank France and Pembroke Lease France SAS and aircraft leasing Germany Standard Chartered Bank Deutschland Guernsey Ireland Isle of Man Birdsong Limited, Nominees One Limited, Nominees Two Limited, Songbird Limited, Standard Chartered Secretaries (Guernsey) Limited and Standard Chartered Trust (Guernsey) Limited Elviria Leasing Limited, Canas Leasing Limited, Pembroke Capital Shannon Limited, Pembroke Nominees Limited, Pembroke 7006 Leasing Limited, Pembroke Alpha Limited, Pembroke 717 Leasing Limited, Inishtubrid Leasing Limited, Inishquirk Leasing Limited, Inishdasky Leasing Limited, Inishilra Leasing Limited, Skua Limited, Nightjar Limited, Inishlynch Leasing Limited, Inishcorky Leasing Limited, Inisherkin Leasing Limited, Inishcannon Leasing Limited, Inishoo Leasing Limited, Inishgort Leasing Limited, Inishroe Leasing Limited, Inishmullen Leasing Limited, Inishcrean Leasing Limited, Inishdawson Leasing Limited, Inishbrophy Leasing Limited, Pembroke Capital Limited, Pembroke Aircraft Leasing 1 Limited, Pembroke Aircraft Leasing 2 Limited, Pembroke Aircraft Leasing 3 Limited, Pembroke Aircraft Leasing 4 Limited, Pembroke Aircraft Leasing 5 Limited, Pembroke Aircraft Leasing 6 Limited, Pembroke Aircraft Leasing 7 Limited, Pembroke Aircraft Leasing 8 Limited, and Pembroke Aircraft Leasing Holdings Limited Standard Chartered Assurance Limited, Standard Chartered Insurance Limited and Pembroke Group Limited Fiduciary services Leasing business Insurance services

7 Italy Standard Chartered Bank Italy Jersey SCB Nominees (CI) Limited, Standard Chartered (Jersey) Limited, Standard Chartered Finance (Jersey) Limited, Standard Chartered Funding (Jersey) Limited, and Standard Chartered Offshore Limited nominee services Luxembourg Standard Chartered Financial Services (Luxembourg) S.A. Financial services Netherlands Pembroke B717 Holdings B.V., Pembroke Funding BV, Pembroke Holland B.V., Pembroke Thai Aircraft ll B.V., Smart Application Investment B.V., Standard Chartered Bank Latin America B.V., Standard Chartered Finance B.V., Standard Chartered Holdings (Africa) B.V., Standard Chartered Holdings (Asia Pacific) B.V., Standard Chartered Holdings (International) B.V. and Standard Chartered MB Holdings B.V. Holding company and investment management Sweden Standard Chartered Bank Sweden Switzerland Standard Chartered Bank (Switzerland) S.A. Turkey Standard Chartered Yatirim Bankasi Turk Anonim Sirketi UK Standard Chartered Bank, Standard Chartered Basinghall Nominees Limited, Standard Chartered Capital Markets Limited, Standard Chartered Corporate Finance (Canada) Limited, Standard Chartered Corporate Finance (Eurasia) Limited, Standard Chartered Debt Trading Limited, Standard Chartered Equitor Limited, Standard Chartered Financial Investments Limited, Standard Chartered Financing No 1 (UK) Limited, Standard Chartered Financing No 2 (UK) Limited, Standard Chartered FURBS Trustee Limited, Standard Chartered Health Trustee (UK) Limited, Standard Chartered Holdings Limited, Standard Chartered I H Limited, Standard Chartered Investments Limited, Standard Chartered Lease Trustee Limited, Standard Chartered Leasing (UK) 2 Limited, Standard Chartered Leasing (UK) 3 Limited, Standard Chartered Leasing (UK) Limited, Standard Chartered Mortgage Finance Limited, Standard Chartered NEA Limited, Standard Chartered Nominees Limited, Standard Chartered Overseas Holdings Limited, Standard Chartered Plc, Standard Chartered Portfolio Trading (UK) Limited, Standard Chartered Receivables (UK) Limited, Standard Chartered Securities (Africa) Holdings Limited, Standard Chartered Strategic Brand Management Limited, Standard Chartered Trustees (UK) Limited, Standard Chartered UK Holdings Limited, BWA Dependents Limited, Chartered Financial Holdings Limited, FinVentures UK Limited, Harrison Lovegrove & Co. Limited, HLC (US) Limited, Pembroke Aircraft Leasing (UK) Limited, SC (Secretaries) Limited, SC Leaseco Limited, SC Overseas Investments Limited, SC Transport Leasing 1 LTD, SC Transport Leasing 2 Limited, The SC Transport Leasing Partnership 1, The SC Transport Leasing Partnership 2, The SC Transport Leasing Partnership 3, The SC Transport Leasing Partnership 4, SCMB Overseas Limited, St. Helens Nominees Limited, Stanchart Nominees Limited, Standard Chartered (CT) Limited, Standard Chartered (GCT) Limited, Standard Chartered (SFD No.1) Limited, Standard Chartered (SFD No.2) Limited, Standard Chartered Africa Limited and Standard Chartered APR Limited Investment management/holding (Holding company) and leasing business Americas Bahamas Standard Chartered Bank Nassau (Bahamas) Brazil British Virgin Islands Standard Chartered Bank (Brasil) S.A. - Banco de Investimento and Standard Chartered Participacoes E Assessoria Economica Ltda Sky Harmony Holdings Limited, Sky Favour Investments Limited, Earnest Range Limited, California Rose Limited and New Group Investments Limited Investment management Canada Standard Chartered (Canada) Limited Corporate finance and advisory services Caymans Cerulean Investments LP, Gettysburg Investments LP, SCB Investment Holding Company Limited, Sirat Holdings Limited, Standard Chartered Asia Real Estate Fund Company Limited, Standard Chartered Corporate Private Equity (Cayman) Limited, Standard Chartered Corporate Private Equity (Cayman) Limited, Standard Chartered Investment Managers (Cayman) Limited, Standard Chartered Principal Finance (Cayman) Limited, Standard Chartered Private Equity (Cayman) Limited and Standard Chartered Saadiq Certificate Company Limited Investment/ Asset management Peru Banco Standard Chartered USA Standard Chartered Capital Investments, LLC, Standard Chartered

8 Holdings Inc., Standard Chartered Trade Services Corporation, Standard Chartered Overseas Investment, Inc., Standard Chartered Securities (North America) Inc., SC Studios, LLC, StanChart Securities International, Inc., Standard Chartered Bank International (Americas) Limited, Standard Chartered International (USA) Ltd., Standard Chartered Capital Management (Jersey), LLC and Standard Chartered Bank United States