UK Tax Strategy

Endo International plc's UK affiliates are publishing their tax strategy in accordance with paragraph 19 (2) to Schedule 19 of the Finance Act 2016 by the United Kingdom, for the year ending 31 December 2017. The policy will apply to the following UK companies:

  • Auxilium UK Ltd.
  • Par Laboratories Europe Ltd.

The strategy includes these taxes and duties in the UK:

  • All corporate income taxes
  • Indirect taxes (VAT, Stamp Duty Land Tax)
  • Employment taxes (PAYE/National Insurance/Construction Industry Scheme)
  • Other applicable tax matters

Background

Endo commenced operations in 1997 by acquiring certain pharmaceutical products, related rights and assets from The DuPont Merck Pharmaceutical Company. Endo International plc is a highly focused generics and specialty branded pharmaceutical company delivering quality medicines through excellence in development, manufacturing and commercialization.

For additional information about the company, please refer to Endo International plc's 2017 annual report available at http://investor.endo.com/.

Governance

Endo, as a publicly traded company, has an internal control framework that upholds policies and procedures to support its tax positions. The Chief Financial Officer ("CFO") is responsible for Endo’s tax risks overall and the VP of Tax ("VP Tax") manages tax risk in the jurisdictions in which it operates. Together they provide guidance and advice to the Board of Directors for Auxilium UK Ltd and Par Laboratories Europe Ltd in conjunction with Endo’s advisors. With respect to UK tax matters, Endo's CFO and VP of Tax rely on the advice of third party attorneys and accountants.

Risk Management

Tax risk emerges due to the intricacy of tax legislation and potential variances in interpretation of such legislation that are applicable to our business operating model. We have internal policies and processes in place to ensure the integrity of our tax compliance obligations. These processes are subject to the same internal controls, review, and external audit as the rest of our business.

Tax Planning

Endo complies with all applicable tax laws and only participates in tax planning that is aligned with its business objectives and activities. Endo abides by the UK Double Tax Treaties and the relevant guidance issued by the OECD for all international tax matters. We seek appropriate clarification from external advisors wherever appropriate.

Relationship with Her Majesty’s Revenue & Customs (HMRC)

Endo International plc is open and transparent with tax authorities, while keeping regular communication with HMRC in the UK. We aim to sustain a relationship of co-operative compliance with HMRC, as with all tax authorities, by providing appropriate responses to requests and taking all reasonable steps to prove that we have an effective tax management process, internal controls and a tax compliant business.