Yelp Group’s Approach to Tax and Tax Planning
Our approach to tax is to comply fully with all applicable tax obligations.Our tax planning is based on reasonable interpretations of applicable law, while maintaining alignment with the substance of the economic and commercial activity of our business. We do not undertake transactions for the sole purpose of creating a tax benefit inconsistent with reasonable interpretation of the relevant tax law.
We consider all relevant risk factors in our tax planning, including the technical strength of the position, reputational risk and financial impact.
Approach to Risk Management and Governance
Yelp’s Chief Financial Officer directly and through delegation is responsible for managing financial risks, including tax risk, with the Audit Committee of Yelp’s Board of Directors (the “Audit Committee”) providing oversight. While the Audit Committee directly oversees tax matters, including over our system of internal controls, it escalates these matters to the Yelp Board of Directors when appropriate.Responsibility for day-to-day management of tax matters is delegated to qualified tax professionals, who provide regular updates to the Audit Committee. Yelp Group’s tax team maintains current knowledge of tax law developments and consults external advisors as needed, particularly for complex or uncertain matters.
We aim to proactively identify, assess and manage tax risks while maintaining an ongoing monitoring program to remain compliant. To this end, Yelp operates a tax control framework that includes process risk and control management for financial reporting purposes and tax compliance. We test and monitor these controls to confirm they are operating effectively, and our internal audit team periodically reviews these processes.
In addition, Yelp’s Code of Business Conduct and Ethics (the “Code of Conduct”) requires compliance with applicable laws, including tax laws. Our Code of Conduct provides multiple options for raising concerns related to potential violations of the Code of Conduct or applicable law, including anonymous options, and encourages our personnel to report compliance concerns.
Tolerance of Tax Risks
We seek to effectively manage tax risk and generally take a cautious approach to tax matters based on reasonable interpretations of applicable law, rather than aggressive interpretations. Where tax risk arises, we manage it pursuant to the principles set out in this document.Relationship with Tax Authorities
The Yelp Group engages with taxing authorities, including H.M. Revenue & Customs (“HMRC”), based on transparency, integrity and cooperation. We:- Proactively engage with HMRC and respond promptly and honestly to all enquiries;
- Seek to disclose all relevant facts and circumstances, and take appropriate action where any errors are identified; and
- Strive to resolve any differences through transparent dialogue and negotiation, aiming for collaborative solutions wherever possible.