Ballyvesey Group Tax Policy
This document, which has been approved by the Board of Directors and published on 4rd July 2024 for the financial year ended 30th September 2024, sets out the tax strategy of Ballyvesey Industries Limited, Ballyvesey Properties Limited and their respective subsidiaries (the ‘Group’). This is the Group policy and approach to conducting its tax affairs in a responsible manner and serves as guidance for all Ballyvesey Group employees.
The tax strategy is published in accordance with Paragraph 16 Schedule 19 Finance Act 2016.
Introduction
The Group trades in the transport, logistics, vehicle distribution, vehicle maintenance, construction equipment, vehicle & equipment auction, trailer manufacture and property development sectors.
A fundamental tenet underlying the administration of all taxes at the Group is compliance with all applicable laws.
Group Tax, supported by Group finance, strive to ensure consistent tax behaviours across the group and establish clear tax responsibilities and support the Group by providing tax advice and input to commercial transactions.
Tax Code of Conduct
The Tax Code of Conduct of the Group is as follows:
- To comply with all applicable laws and regulations in the countries in which we operate
- To meet all tax compliance and reporting obligations
- To ensure that the tax strategy is aligned with the commercial strategy of the Group
- To be open and transparent in all dealings with tax authorities
- To work proactively with tax authorities on any issues or uncertainties that may arise
Governance
Responsibility for the tax strategy, the supporting governance framework and management of tax risk ultimately sits with the Group Financial Controller, reporting directly to the Board of Directors. Day-to-day responsibility for all tax matters is delegated to the Group Head of Tax who reports to the Group Financial Controller.
The Group’s tax strategy is reviewed by the Board of Directors annually. It is supported by our Tax Risk policy and Tax Risk Matrix.
Management of Tax Risks
The Group Head of Tax is responsible for identifying, managing and monitoring tax risks relating to the Group with the FDs and FCs being responsible for identifying, managing and monitoring tax risks relating to their business. The Tax Risks, along with the mitigations in place are regularly reported to the Board of Directors. There is a framework of internal controls including Tax and the Group Internal Audit department provides oversight.
We aim to ensure that all personnel whose business activities may have a tax impact are equipped with an understanding of the tax risks that may rise and how these are managed. The Group Head of Tax provides advice to the business on tax related issues and assistance with tax filing and reporting as well as managing the relationship with tax authorities. Internal Controls are put in place with the aim of identifying, quantifying and managing key risks.
Our Group Financial Controller is the Group’s Senior Accounting Officer and has therefore been appointed by the Board of Directors to hold responsibility for establishing and maintaining appropriate tax accounting arrangements across the group, submitting an annual declaration to HMRC to confirm the tax processes are reliable. As part of this process the Group Financial Controller, supported by the Group Head of Tax, will evaluate the accounting arrangements in each of the subsidiaries, assess the key tax risks impacting that business and ensure appropriate controls are in place to mitigate the risk.
Where appropriate we look to engage proactively with tax authorities to disclose and resolve issues.
Tax Compliance
The Group strives to ensure compliance with all local fiscal tax laws and practice. This includes being committed to paying the correct amount of tax in each country in a timely manner and meeting all tax filing and reporting requirements.
The local Finance Directors (‘FDs’) and Financial Controllers (‘FCs’) are responsible for understanding United Kingdom (UK) and relevant local tax legislation and procedures for the countries in which they operate and for keeping up to date with and complying with all applicable laws, rules, and disclosure requirements.
The Group Head of Tax provides support to all FDs and FCs as required and is responsible for issuing guidance to our Finance Teams to help them make the right tax decisions.
FDs and FCs should notify the Group Head of Tax and the Group Finance Team of any specific tax issues arising in their country.
The Group has internal controls in place to ensure tax compliance is maintained and that tax decisions are taken at the appropriate level, involving the Board of Directors as required. Tax issues are escalated to the Board of Directors within monthly and annual board meetings.
We seek advice from external advisors where necessary.
Tax Planning
We operate our business in the simplest possible way with decisions being driven to serve our customers, to encompass our values, to look after our staff and to generate a profit. The Group does not engage in artificial tax arrangements. The transactions and activities of the group are arranged to operate in a tax compliant manner.
We have a clear Transfer Pricing Policy implemented by Group Finance to ensure that the way we charge between Group companies is transparent, at arm’s length, properly documented, and complies with local laws.
Local companies should claim the proper statutory reliefs in the countries in which they operate and should never use marketed or abusive tax avoidance schemes.
Where the tax treatment or reporting requirements of specific items are unclear, professional advice should be sought by the FDs and FCs from the Group Head of Tax and Group Finance Function which in turn will seek external tax advisor advice and consult with HMRC or the relevant local tax authority when necessary. FDs and FCs are expected to follow the Tax Code of Conduct laid out above.
Attitude to Tax Risk
The Group has a low-risk appetite. Our objective is to pay our taxes in accordance with all relevant laws and regulations in the UK and territories in which we operate and do not use tax loopholes or tax avoidance schemes.
We have a Tax Risk and Control framework in place to ensure continued compliance with tax lows, to identify and mitigate tax risk and we seek external advice or engage directly with tax authorities where uncertainties arise.
Our Relationship with Taxing Authorities
We aim to be open and honest in all dealings with governments and tax authorities always acting with integrity. We work collaboratively wherever and whenever possible with fiscal authorities to resolve disputes and achieve certainty.
Group Tax has ultimate responsibility for managing the relationships with tax authorities. The FDs and FCs should develop good working relationships with tax authorities and respond in a friendly, timely and professional manner to their requests in line with the Tax Code of Conduct as set out above.
In the UK the Group adopts an open, professional, and transparent relationship with HMRC. The Group Head of Tax achieves this by maintaining regular contact with our HMRC Customer Compliance Manager and their colleagues appraising them of all significant and relevant developments within our businesses.
Our Group Tax and Group Finance function reviews this policy periodically and any amendments are approved by the Board of Directors.
4 July 2024
