Tax is the very centre of the social contract and companies are just as important to that contract as individuals are

SSE plc has once again been Fair Tax Mark accredited – the 6^th year in a row we’ve received this prestigious mark of ratification.

As the first FTSE100 company to achieve Fair Tax Mark accreditation back in 2014, we have championed the need for a culture of openness, transparency and pride in paying your fair share of tax and we have remained enthusiastic champions of it.

The Fair Tax Mark sets an independent standard for businesses and customers to trust that those companies achieving the mark have been through a thorough process which ensures they’re paying the right tax, at the right time and in the right way.

Contributing to the public purse is one of the most important social contributions a company can make. Tax is the very centre of the social contract and companies are just as important to that contract as individuals are.

In-line with our policy of transparency and openness we have also released our annual Talking Tax report covering 2018/19.

Once again, in terms of SSE’s economic contribution to the UK, we punch above our weight. While we are normally listed around 40 in the FTSE100, the PwC annual survey of the largest listed companies demonstrates that it ranks 16th out of the UK’s 100 biggest businesses in terms of taxes paid. We also know, because of independent external analysis that our activities in 2018/19 contributed £8.9bn to UK GDP and a further €689m to GDP in the Republic of Ireland.

While it is true the tax affairs of large companies can be complicated, there is no reason why the explanation of the key elements of that contribution needs to be. In our annual tax report our objective has always been to disclose the most important aspects of the tax contribution SSE makes in the places that it operates. We do this because we know that the people we serve expect companies to abide by, not just the letter of the tax rules, but the spirit too.

It is also timely then that the Talking Tax report comes as our business confirmed it has incorporated a wholly-owned subsidiary in Switzerland to hold its investments in its energy networks businesses and to support long-term investment in SSE’s core businesses.

SSE firmly believes that tax should be paid in the jurisdiction where the economic activity occurs and this new subsidiary company changes nothing in that regard. SSE plc itself remains UK listed and pays tax in-line with this. While the Scottish and Southern Electricity Networks subsidiary may be Swiss incorporated, SSE has applied to treat it as UK tax resident, with UK taxes then to be paid on any profits or gains made by the company.

SSE’s long-term commitment to the principles of Fair Tax have become a core element of our 2030 Business Goals. In aligning our business strategy to the United Nations Sustainable Development Goals, we have made a commitment to champion the aforementioned Fair Tax Mark, alongside a real Living Wage. This means tax transparency has a robust and fundamental place in SSE’s future.

It is in all our interests that more companies here and abroad take pride in the contribution they make to the societies within which they operate and that’s why SSE will continue to strive for high standards.

That’s why I’m delighted we have been reaccredited for the 6^th time by the Fair Tax Mark, giving our partners and customers assurance we’re transparent on tax and the contribution we make.