GMR CAPITAL GROUP
Group Tax Strategy
30 September 2023
This disclosure is made in compliance with the duty of GMR Capital Limited under paragraph 16(2), Schedule 19, Finance Act 2016 to publish its group tax strategy in respect of the year to 30 September 2023. It has been approved by the Board of GMR Capital Limited and applies to all UK taxes applicable to the Group. The policy will be reviewed annually.
The Group is committed to:
- Ensuring full compliance with all applicable laws and regulations relating to its tax activities, together with all reporting and disclosure requirements.
- Interacting with the tax authorities in an open and transparent manner based on principles of collaboration and integrity.
- Maintaining high levels of tax governance.
- Being diligent and careful in its management of tax risks.
- Operating its business in a manner which minimises its tax cost using incentives and reliefs whilst ensuring that these reliefs are used in accordance with the spirit of the legislation.
Approach to Risk Management and Governance Arrangements in Relation to UK Taxation
The aspiration of the Group is to maintain the highest standards in relation to compliance with regulations and reporting accuracy. This means paying the correct amount of tax at the correct time.
The Group’s exposure to UK taxes is a significant business risk and, as such, the Group seeks to minimise that risk by ensuring compliance with the relevant legislation. The Group incurs a substantial amount and variety of business taxes including corporation tax, employment tax and other taxes, The Group also collects and pays over employee taxes and indirect taxes such as VAT.
Tax is managed by the business in a manner that is consistent with other areas of operational risk by introducing and maintaining appropriate monitoring and management procedures across the Group.
The Group actively monitors new tax legislation and any changes of interpretation of existing legislation throughout the year. Where appropriate, the Group seeks external assistance from professional advisors and clarification from HM Revenue & Customs where necessary.
Overall responsibility for minimising tax risk rests with the Board. It is managed by the Group Finance Director and individuals in the finance function with the appropriate skills and experience. There is also ongoing engagement with suitably qualified, reputable external firms who, as well as assisting with tax compliance, advise on the tax considerations arising in connection with changes in the business and tax legislation.
Where any risks are identified, the Group will implement appropriate controls and procedures to minimise those risks.
The Group fosters a risk-aware culture in relation to its tax position. Tax risks are assessed on a case by case basis enabling each risk to be managed appropriately.
The Board exercises oversight of tax risk management and governance by:
- discussing the tax implications of its activities at Board meetings
- the involvement of directors with relevant skills in transactions with inherent tax risk.
- considering the legal and fiduciary duties of the directors and employees
The Attitude of the Group Towards Tax Planning
The Group manages risks to ensure compliance with legal requirements in a manner which ensures that the correct amount of tax is paid. The commercial needs of the business will never override compliance with all applicable laws and regulations.
The Group is a commercially driven organisation and tax planning is undertaken as part of the Group’s strategic planning. The Group has a low appetite towards tax risk. Where alternative courses of action to achieve a strategic objective are available, those which reduce tax liabilities will only be adopted if they comply with the spirit, as well as the letter, of the law. External advice is obtained to ensure that this is the case.
Any material tax planning is considered by the Board of Directors and must be supported by an appropriate level of tax analysis. In all cases, the Group ensures that all tax planning relates directly to commercially focused activities. The Group does not seek to structure transactions in ways that produce tax results that are inconsistent with their underlying economic consequences.
The UK tax legislation often incorporates tax incentives, credits or exemptions for commercial business activity. Where the Group qualifies for such incentives, the Group claims them where this is in line with the commercial objectives of the Group. In the event that there is any uncertainty about the availability of such incentives, the Group will take professional advice and/or engage with HM Revenue & Customs to confirm the correct tax treatment.
Approach to dealing with HM Revenue & Customs (“HMRC”)
The Group is committed to the principles of openness and transparency in its dealings with HMRC and the Group commits to:
- adopting an open and collaborative relationship with HMRC.
- engaging with HMRC to discuss tax planning, strategy, risks and significant transactions.
- making accurate and timely disclosure in correspondence and returns and responding promptly to questions and information requests from HMRC.
- be open about decision-making, governance and tax planning.
- interpret tax law in a reasonable way.
The Level of Risk that the Group is Prepared to Accept
GMR Capital Limited and its subsidiaries seek to manage their tax affairs so that tax risk is low. They seek to minimise risk through:
- robust compliance processes, and
- obtaining advice on the tax impact of business changes.
The level of risk which the Group accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the Group’s tax affairs. The Group seeks to comply fully with its regulatory and other obligations and act in a way that maintains its reputation as a responsible corporate citizen.