Exyte Hargreaves Tax Strategy

Date published: 10th December 2020

 

Scope

This strategy applies to Exyte Hargreaves Limited in accordance with paragraph 19 of Schedule 19 to the Finance Act 2016. The strategy has been published in accordance with paragraph 16(4) of the Schedule.

This strategy applies from the date of publication until it is superseded. References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Group has legal responsibilities.

 

Aim

Exyte Hargreaves Limited is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The group’s tax affairs are managed in a way which takes into account the group’s wider corporate reputation in line with Exyte Hargreaves Limited’s overall high standards of governance.

 

Governance in relation to UK taxation

  • Ultimate responsibility for Exyte Hargreaves Limited’s tax strategy and compliance rests with the Board of Exyte Hargreaves Limited;
  • The Internal Audit & Risk Committee of ExyteGmbH (in 2019 still named Exyte AG), the Holding company of the Exyte Group, monitors the integrity of Exyte Hargreaves Limited’s financial reporting system, internal controls and risk management framework. Its scope expressly includes those elements relating to taxation;
  • The Finance Director is the Board member with executive responsibility for tax matters;
  • Day-to-day management of Exyte Hargreaves Limited’s tax affairs is delegated to the Finance Director, who informs the VP Corporate Tax at Exyte Management GmbH;
  • The Exyte Management GmbH Corporate Tax team is staffed with appropriately qualified individuals;
  • The Board ensures that Exyte Hargreaves Limited’s tax strategy is one of the factors considered in all investments and significant business decisions taken;
  • The Finance Director reports to the Audit and Risk Committee and the Board on Exyte Hargreaves Limited’s tax affairs and risks during the year.

 

Risk Management

  • Exyte Hargreaves Limited operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the group’s financial reporting system;
  • Exyte Hargreaves Limited seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations;
  • Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls in place. These key risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required;
  • Appropriate training is carried out for staff outside the Tax team who manage or process matters which have tax implications;
  • Advice is sought from external advisers where appropriate.

 

Attitude towards tax planning and level of risk

Exyte Hargreaves Limited manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.

When entering into commercial transactions, Exyte Hargreaves Limited seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation.  Exyte Hargreaves Limited does not undertake tax planning unrelated to such commercial transactions.

The level of risk which Exyte Hargreaves Limited accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs. At all times Exyte Hargreaves Limited seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.

 

Relationship with HMRC

Exyte Hargreaves Limited ensures that HMRC is kept aware of significant transactions and changes in the business and seeks to discuss any tax issues arising at an early stage. When submitting tax computations and returns to HMRC, Exyte Hargreaves Limited discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.

Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.

 

List of entities covered by this Tax Strategy

  • Exyte Hargreaves Limited

 

The year end of 31st December 2019 has created the requirement to publish the Tax Strategy.

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