Our Approach to Tax
Our Business
Indivior is a global pharmaceutical company working to help change patients’ lives by pioneering life transforming treatment for substance use disorders. Our vision is that all patients across the globe suffering from substance use disorders have access to evidence-based treatment to change lives.
We manufacture and market medicines for the treatment of moderate to severe opioid use disorder and overdose rescue with a portfolio of products available in over 30 countries. Our activities around the world incur a variety of business taxes. We pay corporate income taxes, employment taxes and other business taxes in all jurisdictions, as applicable. We also collect and pay employee taxes and indirect taxes such as value added tax (VAT). The taxes we pay and collect represent a significant contribution to the countries and communities in which we operate.
For more information on our business, please click here.
Our commitment to tax compliance
We are committed to responsible corporate behaviour which includes high standards of conduct in our relationships with our workforce, healthcare providers, shareholders, debt holders, suppliers, governing bodies, regulators, and the local communities in which we operate.
Indivior’s vision is underpinned by high standards of governance and compliance. We are committed to conduct business with strong ethical and moral principles, and this extends to our approach to tax. Our Code of Conduct requires our workforce to be aware of and observe all laws and regulations governing the payment of taxes and the avoidance of facilitating tax evasion.
Our internal Global Tax Policy requires compliance with all applicable tax laws and regulations of each country and region where Indivior conducts business as well as international treaties and conventions. The Group, including subsidiaries in the UK adopt the Global Tax Policy in relation to taxation. We pay taxes as determined by the laws in each jurisdiction where we do business while seeking to mitigate double taxation. In addition, we comply with the Organisation for Economic Co-operation and Development (“OECD”) reporting requirements by filing with HM Revenue and Customs (“HMRC”) in the UK the Country-by-Country Report (“CbCR”) which discloses key financial information for each jurisdiction where Indivior has an operating entity. We have built and seek to maintain a constructive, appropriate, and open relationship with all tax authorities.
Our attitude to tax planning
The transactions into which we enter are driven by our business or commercial aims. We will not engage in tax planning that threatens to undermine our reputation. At the same time, our patient focus drives us to be financially efficient to allow investment in patient access and development of new therapeutic areas. Accordingly, some element of tax risk and uncertainty in each jurisdiction is considered acceptable and typical for an international group of our nature. The Group Tax Team, with our reputation in mind, employs diligent professional care and judgement in assessing tax risk, taking advice from third-party specialists and HMRC to support decision making. Significant tax decisions are subject to additional review and approval by the Chief Financial Officer (“CFO”), the Chief Executive Officer (“CEO”) and the Audit & Risk Committee of the Board of Directors. We have a zero-tolerance approach to tax evasion and the facilitation of tax evasion.
We access government-sponsored tax incentives where appropriate and in line with substantive business activities (e.g., UK Patent Box and R&D Expenditure Credit).
Our approach to tax governance
The Board of Directors is ultimately accountable for the Group’s tax affairs and tax risk oversight. To support with this, tax risk management is discussed periodically with the CFO and with the Audit & Risk Committee, with appropriate oversight from the Board. The Group Tax Team is responsible for alignment of the day-to-day management of the tax affairs with our Global Tax Policy.
Our approach to tax has been formalized and implemented across the Group through our Global Tax Policy which has been approved by the Chief Accounting Officer. Our Global Tax Policy outlines the approval process for decisions that relate to tax, including when the Group Tax Team should be involved in business decisions and how we should manage our relationships with tax authorities. Our Global Tax Policy drives consistency in our approach to tax across the Group and drives compliance with all relevant tax laws, regulations, and obligations in each of the countries in which we operate.
Tax legislation can be complex and differs across the countries in which we operate. As such, tax risk can also arise due to differences in the interpretation of such legislation. Tax risk in each country in which we operate is managed through internal policies and processes to ensure we have alignment across our business and meet our tax obligations.
We manage our cross border inter-company pricing in accordance with authoritative guidelines (such as those issued by the OECD) and follow the arm’s length principle.
Our Group Tax Team is embedded within our business and is regularly represented in decisions taken by other functions to appropriately consider the tax implications of significant business developments.
In executing this tax strategy, our Group Tax Team endeavors to prepare our tax returns accurately and submit them on a timely basis after appropriate levels of review. The Group Tax Team actively monitors new tax legislation and any changes of interpretation of the existing legislation as part of preparation of the tax return. We seek third-party advice from external advisors on complex tax matters where necessary.
These arrangements facilitate review and approval of significant tax-related decisions ensuring that all tax obligations are met.
Our attitude towards risk
We seek to reduce potential tax risks as practically possible by ensuring appropriate contemporaneous documentation and controls are in place. We seek third-party advice on areas of complexity to ensure the resultant risks are appropriately mitigated. We do not take tax positions contrary to the intended purpose of tax legislation.
Our approach to engaging with tax authorities
We aim to maintain constructive and open relationships with tax authorities worldwide. For instance, the Group Tax Team engages openly and regularly with HMRC to review our business activities and to discuss any current, future, and past tax risks across all relevant UK taxes.
This tax strategy has been prepared in accordance with the requirements of paragraph 16 (2) contained in Schedule 19 of the Finance Act 2016. Indivior PLC’s Audit & Risk Committee approved the tax strategy under its delegated authority from the Board of Directors, relating to the Group’s year ended 31 December 2024.
