BACKGROUND
Integrity is a core value of Plukon Food Group, emphasizing accountability and doing the right things. Plukon Food Group is committed to innovation, realism and responsibility, which is also reflected in an responsible view on tax strategy. The Group’s Code of Conduct highlights the importance of consulting senior management in case of any tax-related uncertainties. Additionally, the Code of Conduct incorporates measures to prevent the facilitation of tax evasion by avoiding business engagements with partners involved in such activities. The tax strategy outlined in this document specifically pertains to UK taxation.
SCOPE
The tax strategy is approved by the Board and Audit Committee and applies to Flandrex UK as party of the Plukon Food Group. The document will be reviewed periodically, with annual reviews as a minimum requirement. The Group considers the publication of this document as compliant with the duty under Part 2, Schedule 19, Finance Act 2016.
Approach to business tax
Plukon Food Group adheres to several guiding principles in its approach to business tax:
- Paying the right amount of tax in the right place and at the right time.
- Compliance with relevant laws, regulations, and reporting requirements, with a focus on communicating and disclosing tax-related information to HMRC.
- Supporting the execution of the business strategy through a consistent approach to tax that aligns with core values, including operational improvement, efficiency, transparency, and sustainability.
- Managing tax risks with professional care.
- Building and maintaining collaborative relationships with tax authorities.
- Utilizing available tax incentives to minimize business costs as per applicable legislation.
OVERVIEW OF INTERNAL GOVERNANCE
Tax-related matters fall under the ultimate responsibility of the CFO, who also serves as the Senior Accounting Officer for UK tax affairs. The Audit Committee holds at least three meetings annually, where the CFO, Group Financial Controller, and Group Tax Manager provide updates on tax risks and developments. Tax is a regular topic discussed by the Board, and updates are included in the monthly CFO report. Day-to-day tax matters are overseen by the Group Tax Manager and Group Financial Controller, who maintain regular meetings with external tax professionals to ensure compliance with best practices. Adequate controls are in place to identify and pay the correct amount of taxes.
Approach to Risk Management
The Audit Committee meetings include discussions on tax risks and developments, with the CFO, Group Financial Controller, and Group Tax Manager in attendance. The Group Controls Manual outlines key controls for tax, both direct and indirect, which are implemented by each division of the business. Internal audits and external reviews periodically test adherence to these controls. The Group maintains tax control matrices for Corporation Tax, VAT, and PAYE. External tax professionals prepare UK tax returns based on information provided by the UK finance team. In cases of doubt or judgment decisions regarding the application of tax legislation, external advice is sought.
Attitude to Tax Planning
While Plukon Food Group operates in multiple jurisdictions, tax planning aligns with commercial and economic activities. Tax payments are made in jurisdictions where commercial activities occur, and the Group refrains from planning strategies that artificially record taxable profits in non-commercial jurisdictions. The Group seeks HMRC’s view on transactions with uncertain tax implications, providing comprehensive details of business activities. The aim is to maintain clarity and predictability in tax affairs.
Relationship with HMRC
The Group strives for a collaborative working relationship with HMRC. Regular communication, including at least one annual meeting with the HMRC Customer Compliance Manager, facilitates dialogue and timely resolution of disagreements or interpretative points. The Group aims to strengthen its relationship with HMRC to ensure clarity and predictability in tax matters. HMRC’s perspective is sought on any significant uncertain tax positions.