Greystar is committed to complying with tax laws in all the jurisdictions where we conduct business. Consistent with the Company’s Core Values we strive to maintain the highest ethical standards and principles and to ensure that our global and UK tax strategy complies fully with all applicable tax laws and regulations and meets all applicable reporting obligations in a timely and accurate fashion. Our global Tax team is staffed by qualified and experienced tax professionals, and we maintain accounting systems and strong internal controls sufficient to support our tax compliance obligations.
Commercial activities are the driving force around Greystar’s tax planning and professional advice is obtained from independent external tax advisors in order to establish appropriate compliant investment structures. We will not undertake planning that is considered tax evasion or a marketed tax avoidance scheme. Globally Greystar strives to adhere to relevant tax laws to ensure that appropriate tax compliance is prepared and reported timely and that sufficient tax planning is implemented. We seek to take advantage of available tax incentives, reliefs, and exemptions in line with, and in the spirit of, the tax law. Transactions between related parties are entered in to in accordance with current OECD principles, relevant tax laws and applicable tax treaties.
Governance and Tax Risk Management
Responsibility for Greystar’s tax strategy, tax risks, and tax planning, along with our overall business strategy, sits with senior business leaders who are briefed on material tax issues and legislative changes that affect the Company’s operations and investments. The Managing Director of Tax has oversight of global tax transactions with daily responsibility for implementation residing within the individual lines of business. The European Senior Director of Tax has oversight of the European / UK tax planning and compliance processes, with daily responsibility for implementing tax planning residing with the European business teams and day to day responsibility for compliance being managed by the accounting teams.
Globally Greystar manages tax risk through:
- Employing internal tax professionals with the experience and expertise to evaluate the types of tax risks inherent in the business and industry within which we operate;
- Greystar’s Investment Committee approval process which requires internal and external tax review as part of the overall investment and transactions approval process;
- Maintaining internal financial systems and controls to ensure accurate and timely financial reporting to support the tax compliance process;
- Continuing professional education for internal tax team members;
- Engaging globally recognized external tax advisors to assist with monitoring changes in tax legislation, to advise on tax planning, and tax risks.
Greystar’s Code of Conduct establishes the framework for the Company’s overall risk tolerance, and it requires team members to act honestly, to obey all laws, and to act in a professional manner with all stakeholders. With guidance from external tax advisors, we strive to evaluate and manage risks to ensure they remain in line with the Company’s overall objectives. When material uncertainties or complexities arise on specific transactions those are brought to the attention of our senior business, legal, finance, and compliance leaders in order to ensure appropriate resolutions are attained.
Approach Towards Dealing with Tax Authorities
In line with Greystar’s Code of Conduct, our dealings with tax authorities, including HMRC, are conducted in an open, honest and professional manner. Greystar commits to ensuring full and complete tax return filings within statutory limits, providing full and timely disclosures of all relevant matters. We seek to resolve any disputed matters through open dialogue with external tax authorities. Communication with Tax authorities are managed by our Tax teams in conjunction with external advisors.
This statement is published in accordance with the requirements of Paragraph 16(2) Schedule 19 Finance Act 2016. The Finance Act 2016 includes a requirement for certain businesses to publish their strategy as it relates to UK taxation, in an effort to encourage responsible tax behavior and transparency. Greystar regards the publication of this tax strategy as complying with the duty under Part 2 of Schedule 19 of Finance Act 2016 to (i) publish the UK business’s tax strategy in respect of the financial year ended December 31, 2020 and beyond.
Updated December 15, 2020