TAX STRATEGY

GMR Capital Limited is the ultimate parent company of the Rontec Group, and 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 2017. It has been approved by the Board of GMR Capital Limited.

Approach to Risk Management and Governance Arrangements in Relation to UK Taxation

The group’s exposure to UK taxes is a significant business risk and, as such, the group seeks to minimise the risk by ensuring compliance with the relevant legislation.

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.

The Board exercises oversight of tax risk management and governance by:

– discussions at the monthly Board meetings which incorporate key tax information, and

– the involvement of directors with relevant skills in transactions with inherent tax risk.

The Attitude of the Group Towards Tax Planning

The group is a commercially driven organisation and tax planning is undertaken as part of the group’s strategic planning. 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.

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 Approach of the Group Towards its Dealings with HMRC

The group seeks to maintain an open and transparent relationship with HMRC, whether through meetings, telephone conversations or written correspondence. One measure of this is the objective of achieving a “low risk” rating as measured by HMRC’s annual Business Risk Review. Clearance in advance of transactions is obtained from HMRC, where available. Where there is perceived to be ambiguity in tax law, the filing position adopted is fully disclosed. And where there is a difference of opinion with HMRC the group seeks to resolve the difference in a constructive manner.