Overview
This tax strategy is published by and on behalf of Moonbug Entertainment Limited (“Moonbug”) and all of its UK subsidiaries, sub-groups and UK permanent establishments (together the “Moonbug Group”) in accordance with and pursuant to Schedule 19 of Finance Act 2016 for the financial year beginning 1st January 2024. The underlying principles of this tax strategy will guide the decisions relating to the Moonbug Group’s tax matters.
About Moonbug
Moonbug is a global entertainment company that creates and distributes inspiring and engaging stories to expand kids’ worlds and minds. Moonbug was founded in 2018 and creates, produces and distributes thousands of minutes of video and audio content every month with the goal of teaching compassion, empathy and resilience to children around the world. Moonbug is headquartered in London with offices in Los Angeles and Singapore. Moonbug is part of Candle Media, a company headquartered in the US.
Further information regarding Moonbug can be found at: https://www.moonbug.com.
Governance and management of tax risk
The Moonbug Group has a zero-tolerance policy with regard to tax evasion, anti-bribery and money laundering. Moonbug is committed to complying with all applicable laws and regulations relating to such matters.
In relation to tax, Moonbug has in place processes and controls to ensure compliance with all tax laws and regulations in which Moonbug does business. The International Tax Director of the Moonbug group holds primary responsibility for ensuring such compliance. The International Tax Director for the Moonbug Group reports directly to the Moonbug Group Chief Financial Officer, who, together with senior management, have implemented a robust control environment.
Tax risks are identified via this control environment, and mitigation of those risks is supported by the International Tax Director and the wider finance team. The board of directors of Moonbug and the Moonbug Group receive updates on tax matters on a regular basis as is required.
The Moonbug group tax and finance teams are closely integrated with the Candle Media teams, who provide their support and expertise, giving an additional layer of review to our controls environment and processes. As part of this support system, Moonbug’s International Tax Director works closely with the Candle Media Senior Vice President of Finance and the Candle Media Chief Financial Officer.
Where there is sufficient complexity or inherent uncertainty in tax positions, Moonbug reduces its tax risk by seeking the advice and guidance of external advisers.
Attitude towards tax planning and appetite for risk
Moonbug is a responsible tax payer. Moonbug’s expectation is that all tax positions are underpinned by the commercial and economic realities of the Moonbug Group, with these being the primary factors driving decision making.
Where credits and incentives are available, the Moonbug Group will seek to benefit from these, in order to lower the cost of doing business, as is the intent of such policies. This is consistent with Moonbug’s approach to taxes more widely where Moonbug intends to comply with the spirit as well as the letter of the tax legislation in the countries and territories in which it operates. As such, Moonbug’s risk tolerance is relatively low, with the emphasis being on acting with integrity to protect the reputation of Moonbug’s business.
Working with tax authorities
Moonbug’s goal in working with tax authorities is to avoid disputes and to strive for resolution or agreement as early as practical should a dispute arise. In all dealings with tax authorities, Moonbug works in a collaborative and transparent manner, which includes being proactive in its communication and timely with responses to information requests.
Approval
This statement is made pursuant to Schedule 19 of Finance Act 2016 and has been reviewed and approved by the board of Moonbug and the Moonbug Group for the financial year beginning 1st January 2024.
Yitzchok Shmulewitz, Chief Financial Officer
December 2024
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