The following Tax Strategy applies to EVO Business Supplies Limited and all of its subsidiary companies. In this strategy references to ‘EVO Group’, ‘the EVO group of companies’ or ‘group’ are to all of these entities. References to ‘Tax’ are to the taxes and duties set out in paragraph 15(1) Schedule 19 FA 2016 and include corporation tax, PAYE, NIC, VAT and Stamp Duty Land Tax.
The EVO Group of companies’ Tax Principles are as follows:
- to observe and be compliant with all tax laws, rules, regulations and disclosure requirements in the territories in which we operate;
- to only enter into transactions that have a genuine business purpose or commercial rationale;
- to actively manage tax risk within the business in order to obtain certainty in our tax positions as far as possible; and
- to develop and maintain a good working relationship with HMRC based on transparency and openness.
Overall our aim is to meet all of our tax liabilities, within both the spirit and the letter of the tax law applicable to the territories in which we operate as part of our commitment to being a responsible business.
The responsibility for this Tax Strategy and the supporting governance framework is as follows:
- The ultimate responsibility for EVO Group’s tax strategy and compliance rests with the Board of EVO Business Supplies Limited.
- The Chief Financial Officer has responsibility for tax at Board level and communicates with and advises the Board on the tax affairs and risks of the Group.
- The day-to-day management of EVO Group’s tax affairs is delegated to the Group Tax Manager, who reports to the Group Financial Controller.
- The in-house tax team is staffed with appropriately qualified individuals.
- The Board of EVO Business Supplies Limited ensure that EVO Group’s tax strategy is one of the factors considered in all significant business decisions.
Tax Risk Management
The EVO group of companies is exposed to a variety of tax risks. These include tax compliance, reporting and transactional risks. EVO Group has a low risk appetite in relation to tax matters and as such actively seeks to manage tax risk.
We apply diligent professional care and judgement in transactions which includes ensuring that all decisions are taken at an appropriate level and supported with documentation that evidences the facts, conclusions and risks involved.
Where the tax treatment of an item is uncertain or complex we will seek appropriate advice from our external professional advisors. When working with our professional tax advisors we will act with the same integrity that we apply to our dealings with HMRC, we will be open and honest with them so that they can advise us accurately on any tax treatments. Where the tax treatment of an item is uncertain or complex we may also seek advance clearance from HMRC.
We are committed to ensuring that a framework of systems and processes is in place to ensure that we meet all statutory reporting requirements and that tax returns are accurate in all material respects. We actively seek to identify, evaluate, monitor and manage the tax risks facing the business through a tax risk register which is reviewed and overseen by the Chief Financial Officer.
Attitude towards tax planning and level of risk
The tax team is involved in all significant business developments so that we can fully assess any potential tax consequences of our actions in advance as well as ensuring that transactions are accurately represented in tax returns and tax accounts.
The EVO Group of companies has a duty to its shareholders to seek to minimise its tax burden where it is possible to do so in a manner consistent with our commercial objectives and our tax principles. Therefore, when evaluating a business transaction in the planning stage and there are alternative approaches to achieve the same commercial results, the most tax efficient approach to comply with the law will be favoured and recommended. Where it is responsible and appropriate to do so, we will claim all available tax allowances, deductions, reliefs, incentives, exemptions and credits.
We will not put in place any arrangements that are contrived or artificial and will not get involved in tax planning that does not support genuine commercial activity.
The low level of tax risk the EVO Group of companies is willing to accept is directly related to our tax principle to aim for certainty in our tax affairs as far as possible.
Relationship with HMRC
EVO Group seeks to maintain a strong collaborative working relationship with HMRC based on honesty, integrity and proactive cooperation. We will ensure that HMRC is kept aware of significant transactions and changes in the business and seek to discuss tax issues at an early stage through regular meetings and communication.
We are committed to retaining our relationship of trust with HMRC and our low risk tax status. We will be open and transparent with HMRC in real time.
We will never deliberately conceal or knowingly misrepresent issues to tax authorities, if we discover errors, then we will disclose them as soon as practically possible. When submitting tax computations and returns we will disclose all relevant facts and identify any transactions or issues where the tax treatment is uncertain.
Tax Strategy Process
This strategy applies until it is superseded. It will be reviewed annually to ensure that it remains appropriate. It will also be reviewed in the event of any significant group reorganisation or changes in activity to ensure that it remains appropriate.
EVO Group regards the publication of this tax strategy as complying with its duty under paragraph 16(2) of Schedule 19 Finance Act 2016 to publish its Group tax strategy in the current financial year.