Norwegian Cruise Line Group – 2019 Tax Strategy
Our UK tax strategy
This statement is made to satisfy the UK requirements of Timetable 19 Finance Act 2016 as is relevant to the UK resident companies in the Norwegian Cruise Line group for the year ending 31 December 2019.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a leading global cruise company which operates the Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises brands. With a combined fleet of 26 ships with approximately 54,400 berths, these brands offer itineraries to more than 510 destinations worldwide. UK resident companies in the Norwegian Cruise Line group include the following:
- Norwegian Cruise Line Holdings Ltd.
- NCL Corporation Ltd.
- NCL (Bahamas) Ltd. – UK Branch
- Norwegian Compass Limited
- Norwegian Sextant Limited
- Norwegian Cruise Line Group UK Limited
- Eurosoft Corporation Limited
- Breakaway Four, Ltd.
- Norwegian Cardinal Ltd.
The tax policy is part undertaken in accordance with the group’s overall code of business conduct and ethics.
1. Our approach to tax risk management and governance
Our approach to UK tax is overseen by the Audit Committee of the Board of Directors. The Vice President of Tax within the Tax Department is responsible for implementing our approach to tax. The Vice President of Tax and the Tax Department team members are responsible for ensuring that all policies and procedures that support our approach are in place and that the Tax Department has the appropriate skills and experience required.
The Vice President of Tax discusses tax developments with the UK Vice President of Accounting and Finance. Tax developments include monitoring changes to tax law and assessing their impact, and evaluating material tax risk.
2. Our attitude towards tax planning
Our approach to tax matters in the UK is based on open discussion with HMRC and obtaining agreement with HMRC on key matters, and our tax position in the UK reflects our underlying commercial substance.
Intercompany transactions are conducted on arm’s length principles, in accordance with OECD guidelines.
3. The level of risk in relation to UK taxation that the group is prepared to accept
We operate a framework to ensure compliance with tax laws and regulations, and as part of that framework we seek to mitigate our UK tax risks by actively engaging with HMRC on key tax matters.
We ensure that we are compliant and understand our responsibilities with regards to UK taxes through advice from professional advisors as required.
We believe we take a low risk approach to UK tax matters.
4. Our approach to dealings with HMRC
We actively engage with HMRC on material UK tax matters and respond to information requests in a timely manner and provide access to all relevant information.