Commitment to compliance
We comply with tax law and practice in all of the territories in which we operate, including the UK, which is one of our places of business. Compliance for us means paying the right amount of tax in the right place at the right time and involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.
Compliance for us also requires that this tax strategy be published in accordance with applicable legal requirements.
Attitude toward tax planning
In structuring our commercial activities we will consider – among other factors – the tax laws of the countries within which we operate with a view to maximizing value on a sustainable basis for our shareholders. Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals. We will not undertake planning that is contrived or artificial.
The Group Code of Conduct guides our approach to tax planning and requires all tax decisions to be consistent with principles of integrity, transparency, and responsible business conduct. Planning decisions are influenced by commercial drivers, regulatory requirements, risk‑management considerations and the impact on the company’s reputation.
Where there is significant uncertainty or complexity in relation to a tax planning, external advice may be sought; especially when tax legislation is complex or open to significant interpretation, business transactions involve cross‑border or specialized tax issues, we require independent verification of the tax implications of material decisions, or there is uncertainty regarding the correct application of tax law.
Level of tax risk accepted
Given the scale of our business and volume of tax obligations, risks will inevitably arise from time to time in relation to the interpretation of tax law and nature of our compliance arrangements. We proactively seek to identify, evaluate, manage and monitor these risks to ensure they remain in line with the group’s risk appetite. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought.
Approach to dealing with tax authorities
We engage with tax authorities, including HMRC, with honesty, integrity, respect and fairness and in a spirit of co-operative compliance.
This includes providing timely, accurate and complete information to support HMRC’s understanding of our business and tax positions.
We strive to be transparent about current, future and past tax risks across all relevant taxes.
We are prepared to litigate where we disagree with a ruling or decision of a tax authority but will first seek to resolve any disputed matters through pro-active and transparent discussion and negotiation.
Approach to tax risk management and governance arrangements
We identify and reduce inherent tax risks by maintaining regularly monitored internal controls, including periodic reviews of tax‑sensitive processes. These controls are reviewed based on materiality and risk and updated to reflect business growth and changes in tax legislation. When a tax risk is suspected, advice is sought from a tax specialist. External tax advisers may be engaged to verify compliance procedures, provide specialist advice and perform independent reviews of complex matters.
This strategy is aligned with our group Code of Conduct and is approved, owned and overseen by the President of DNP Photo Imaging Europe SAS.