In compliance with section 161 and section 19 (2) of schedule 19 Finance Act 2016, we publish below our tax strategy.
Our business has a strong focus on corporate responsibility, and we see responsible administration and payment of taxation as a responsibility of our business.
Tax strategy
Our overall tax strategy is to:
• Comply with all relevant law, rules, regulations, and reporting and disclosure requirements, wherever we operate
• Pay the correct amount of tax at the right time
• Identify, evaluate, monitor and manage tax, legal and regulatory risks
• Apply professional diligence and care in the management of all risks, including tax matters
• Take an appropriate and balanced approach when considering how to structure tax-sensitive transactions
• Seek to utilize available tax reliefs and incentives where available in a manner which is consistent with applicable law and regulations
• Consider the tax impact in major or complex business decisions, for example acquisitions
Risk management
This Group Tax Strategy for the Accounting Period ending 31 March 2023 has been reviewed by the Board of Danbro Holdings Limited (“the Board”) and is aligned to the business strategy to support genuine commercial activity. The Board is committed to manage its tax affairs in a responsible and transparent manner, to comply with all relevant tax legislation and to have due regard for the Group’s wider reputation and corporate social responsibilities. All actions taken to secure the aims and objectives of the Group Tax Strategy will be supported by appropriate legal, accounting, valuation and other relevant professional support and advice, including where required, third party professional tax support and advice.
Performance against the Group Tax Strategy is the responsibility of the Group Finance Director who is the Senior Accounting Officer. Controls in place to minimise our Tax Risk include:
• Under the Group’s Risk Management processes, tax compliance is one of the specific risks identified for constant monitoring and action planning and is discussed by the Directors in the Risk Review meetings
• A Group Task Risk Assessment which is reviewed at least annually by all Directors of the Group
• The Group understands the complex nature of tax and seeks specialist advice in connection with non-routine transactions
• The Group contacts external advisers with technical queries when appropriate. There are regular meetings between the Group and its tax advisers to discuss developments within the Group that requires tax input from specialists and to ensure that plans to meet legislative changes in relation to taxes are put in place
• The Group Finance Director, who together with the Managing Directors of the Group’s accounting and umbrella businesses, are responsible for day to day tax across the Group and ensure that it has appropriate tax software systems in place to calculate liabilities in line with up to date legislation and appropriately qualified staff to operate these systems.
• The Group has a system of internal audit and attestation statements over reviewing and complying with tax legislation
Tax planning
The Group will not engage in artificial transactions the sole purpose of which is to reduce tax. However, the Group will consider undertaking a transaction in a way that gives rise to tax efficiencies providing this is aligned to the Group’s commercial strategy and complies with the associated tax legislation. The Group will seek advice from external advisors where the existing Finance or Payroll team does not have the appropriate level of tax knowledge and experience to ensure compliance with existing tax legislation.
Tax risks and working with HMRC
The Group’s strategic aim is to be low risk in respect to tax compliance and to have a strong relationship with HMRC. The Group seeks to achieve this aim through submission of all UK Tax returns on a timely basis and paying the appropriate amount of tax at the right time. In addition the Group Finance Director seeks to involve the HMRC Senior Accounting Officer team to discuss any complex matters. Whilst Danbro is under the Senior Accounting Officer regime the Group is not large enough for HMRC to assign a Customer Compliance Manager.
