Our Approach to Tax
Our Business
Indivior is a global pharmaceutical company working to help change patients’ lives by pioneering lifetransforming treatment for substance use disorders and other serious mental illnesses. Our Vision is
that the millions of people across the globe suffering from substance use disorders and serious
mental illness have access to evidence-based treatment to change lives.
We manufacture and market medicines for the treatment of moderate to severe opioid use disorder
with a global portfolio in 37 countries. We also market medicine for the treatment of schizophrenia
in adults in the United States.
Our activities around the world incur a variety of business taxes. We pay corporate income taxes,
employment taxes and many 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 societies in which we operate.
For more information on our business, please click here.
Corporate responsibility 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 purpose, to bring science-based, life transforming treatment to patients, is underpinned by
high standards of governance and compliance. We are committed to conduct business on a
foundation of strong ethical and moral principles, and this extends to our approach to tax. Our Code
of Conduct requires all of our workforce to be aware of and observe all laws and regulations
governing the payment of taxes.
Our Global Tax Policy requires compliance with all applicable tax laws and regulations of each
country and region where Indivior conducts business as well as the international treaties and
conventions. Indivior Plc and its subsidiaries in the UK also share and adopt the Global Tax Policy in
relation to UK taxation. We pay the taxes determined by the laws in each country where we do
business while seeking to mitigate double taxation. In addition, we comply with the reporting
requirement of the Organisation for Economic Co-operation and Development (“OECD”) 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 tax
authorities.
Our attitude to tax planning
The transactions into which we enter are primarily driven by our business or commercial aims. We
value our reputation, and we will not engage in any tax planning that threatens to undermine it. At
the same time, our patient focus drives us to be financially efficient to allow investment in patient
access and new therapeutic areas. The Group Tax Team, with our reputation in mind, employs
diligent professional care and judgement in assessing tax risk, and may take advice from third-party
specialists and HMRC to support the decision-making process. 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 risk management and 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
the day-to-day management of the tax affairs aligned with our Global Tax Policy.
Our approach to tax has been formalised and implemented across the Group through our Global Tax
Policy which has been approved by the Group Controller. 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 seek to reduce potential tax risks as far 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 the legislation.
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.
The Group Tax and Finance teams monitor changes in the tax environment to ensure we remain
compliant with the local laws.
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 the tax strategy, our Group Tax Team endeavours 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 UK tax-related decisions ensuring
that all UK tax obligations are met.
Our approach to engaging with tax authorities
We aim to maintain constructive and open relationships with Tax Authorities worldwide. 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. It has been approved by Indivior PLC’s Audit & Risk Committee under its
delegated authority from the Board and relates to the Group’s year ended 31 December 2023.
