Pearson today publishes a report on its taxation and financial information on a country-by-country basis for the financial year ended 31st December 2016.
The report is a voluntary disclosure and provides an update on the tax principles that Pearson uses to guide its approach, a description of its tax strategy as well as financial information for the company’s 12 largest markets. These 12 markets together account for 95% of total revenue inclusive of inter-company sales and recharges. The financial information includes revenue, profit before tax, tax paid and employee numbers.
In 2016, Pearson contributed £45 million in cash in its countries of operation. This ‘actual tax paid’ figure relates only to corporation tax and does not cover the indirect cash taxes collected and paid by the company. The amount of tax paid by Pearson in 2016 was lower than previous years reflecting trading challenges, restructuring costs and payments to fund employee pensions. Over the last five years, Pearson has paid £750m in tax on business profits around the world.
A key pillar of Pearson’s sustainability strategy is to be a trusted partner which means operating ethically, responsibly and transparently. This commitment covers a range of issues, such as treating suppliers as partners in stimulating economic growth, paying employees fairly, and also paying tax due.
In releasing the report, Coram Williams, Chief Financial Officer of Pearson, said:
‘Today, Pearson joins a small number of multinational companies that make a voluntary disclosure on a country-by-country basis of tax paid. We recognise growing interest in how companies approach taxation matters and Pearson has published this report setting out our principles, policies and strategy. This forms part of our commitment to greater transparency in how we run our business and is an important addition to our wider sustainability reporting.’
The full tax report can be found online at www.pearson.com/corporate/about-pearson/our-position-on/tax.html
Pearson is the world’s learning company, with expertise in educational courseware and assessment, and a range of teaching and learning services powered by technology. Our mission is to help people make progress through access to better learning. We believe that learning opens up opportunities, creating fulfilling careers and better lives. For more, visit www.Pearson.com, and follow us on Twitter @Pearson.