Foreword


Taxes support quality public services There is little doubt that the tax companies pay is under increasing public scrutiny. That’s why SSE wanted to publish this document on tax. We aim to be clear and open about the principles that govern our approach to paying tax as well as the taxes we paid in financial year 2015/16.


For me, there is an unwritten social contract between business and the society it serves. Business benefits from public services – roads, health services and education – so there is a duty to pay back into the system that helps our business success. That’s why I have always believed that tax should not be seen as a penalty on profit.


Paying the right amount of tax, in the right country, at the right time and in the right way is simply the way we make sure we contribute to quality public services for all of us in the long run.


Of course SSE does not seek to overpay tax – we have a responsibility not to do so to both our customers and our shareholders. But we do rule out the sorts of practices that mean we could avoid tax. We will not use tax havens and we will not use artificial profit shifting mechanisms. We seek to have a constructive relationship with the tax authorities in each of the countries we operate in. We also publish significant details on our accounts about the taxes paid, and this report marks the third ‘country by country’ report we have published.


SSE remains the only FTSE100 company to have achieved Fair Tax Mark accreditation. We hope this third party mark gives our customers, and other stakeholders, confidence that we pay our fair share of tax.


We appreciate that the complexities of tax laws are not for everyone. So our aim is not only to make our tax affairs open but make them accessible too. We would therefore welcome comment from stakeholders on whether we have achieved that – so we can make it better in the future.


Gregor Alexander Finance Director


“Paying the right amount of tax, in the right country, at the right time and in the right way is simply the way we make sure we contribute to quality public services for all of us in the long run.”


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