Tax Strategy for the Year Ending 31 December 2020 of Car Benefit Holdings Limited and its subsidiaries
This tax strategy which has been approved by the Board of directors, sets out the tax strategy of Car Benefit Holdings Limited and its subsidiaries (‘’the Group’’).
We regard our tax strategy to be compliant with Schedule 19 Finance Act 2016 in terms of content and meeting our responsibility to publish our strategy.
We are committed to a tax strategy that is both open and compliant. As a large group, we recognise the importance of being transparent regarding the taxes we pay.
Our tax contribution goes significantly beyond the corporate tax paid by the Group on its profits. We pay a significant amount of payroll taxes, in addition to operating as a collector of taxes through the PAYE and VAT systems.
The Group is committed to ensuring that it conducts its tax affairs in a responsible manner so that the Group complies with all relevant laws, rules, regulations and reporting requirements. The overall tax strategy of the group is to:
- Meet all legal requirements and to make all appropriate tax returns and tax payments.
- Consider the tax impact in major or complex business decisions.
- Operate in an environment where we consider tax in the context of our reputation and brand.
- Comply with appropriate tax risk processes and ensure there is Board oversight into this compliance.
The approach of the Group to risk management and governance arrangements in relation to taxation
We want our tax affairs to be transparent and compliant with tax legislation and recognise that managing tax compliance is increasingly complex. Our internal structure is set up to ensure:
- The Board of directors understand the importance of tax compliance, and how it is achieved.
- There is a constant dialogue between the Board and those individuals tasked with the operation of our finance function, regarding the way our business manages its tax risk.
- The business portrays a positive view towards tax compliance and the importance of meeting our obligations.
The attitude of the group towards tax planning
We undertake tax planning as part of our overall business strategy. Our approach is only to undertake tax planning that is aligned with economic activity and is in accordance with the intention of Parliament. Professional advice is sought on a transactional basis, with the depth of such advice being driven by our assessment of the risk presented by each opportunity.
We do not undertake aggressive tax planning, the sole purpose for which would be obtaining a tax advantage. We have a responsibility to minimise our tax risk and our exposure to negative publicity through non-compliance.
The level of risk in relation to taxation that the group is prepared to accept
The Board sees compliance with tax legislation as key to managing our tax risk. We understand the importance of tax in the wider context of business decisions and have processes in place to ensure tax is considered as part of our decision-making process.
We have relationships with professional advisers that allow us to seek expert advice on specialist areas of tax. Our approach is to ensure we are compliant with tax legislation and understand our responsibilities with regards to tax, rather than looking for ways to aggressively avoid the payment of tax.
The Board is conscious of the hugely negative publicity attracted by a bad attitude towards tax and sees strong internal processes and a good relationship with HMRC and our professional advisors as the best way to manage this reputational risk.
The approach of the group towards its dealings with HMRC
Our communication with HMRC is focussed around timely tax compliance, for example meeting relevant filing and payment deadlines for taxes the company pays.
The Group seeks to adopt an open and cooperative working relationship with HMRC and endeavours to resolve all issues by agreement where possible.
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