Our tax policy comprises five key components:
- Commitment to compliance - We are committed to compliance with tax law and practice in the UK. Compliance for us means paying the right amount of tax in the right place at the right time. It involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available. We take particular care in relation to the split of tax obligations between the UK and Ireland and have appropriate systems in place to separately record and pay tax obligations for each of our trading jurisdiction.
- Responsible attitude to arranging our tax affairs - In structuring our commercial activities we first consider the aim of the group which is to generate profits and cash from operations. We will consider – among other factors – the tax laws of the countries in which we operate and will work with our parent group with a view to maximising value on a sustainable basis for our shareholders and minimise leakage. For example, we will often look to take steps to reduce the risk of double taxation (i.e. the same income being taxed twice in two different jurisdictions). Any structuring that is undertaken will have commercial and economic substance and broader goals. We will not put in place any arrangements that are contrived or artificial.
- Effective risk management - Given the scale of and geographical reach of our parent group (Candy S.p.A.) and the volume of international trade and varying tax obligations, risks will inevitably arise from time to time in relation to the interpretation of complex tax law and nature of our compliance arrangements. We along with our parent group actively seek to identify, evaluate, monitor and manage these risks to ensure they remain in line with our objectives. Where there is significant uncertainty or complexity in relation to a risk, external advice would likely be sought, particularly in relation to our international trade and tax obligations. We have an appropriate group wide transfer pricing arrangement to ensure all intercompany transactions are carried out on arm’s length terms.
- Constructive approach to engaging with HMRC - We engage with HMRC with honesty, integrity, respect and fairness and in a spirit of co-operative compliance. Wherever possible, we do so on a real time basis, to minimise tax risk. We would always seek to resolve any disputed matters through active and transparent discussion along with our parent company, our advisers, HMRC and other international regulatory tax bodies.
- Board ownership and oversight - This UK tax policies and strategy is approved and owned by the Board. This statement was last approved on 29 December 2017. Our parent company’s international tax policy is also a matter for the Candy Group Board.
Appendix – UK companies that are included within this strategy are:
- Hoover Limited
- Candy Holdings Limited
- Kelco Limited
- Candy Domestic Appliances Limited