Schedule 10 of Finance Bill 2016 introduced a requirement for large groups to publish details of their tax strategy online. The Strategy must be refreshed and republished no less than nine and no more than fifteen months from the previous strategy publication.
Megger is committed to paying all taxes that are due and to complying with all applicable laws and engaging with all applicable tax authorities.
This policy is produced by the Megger Group CFO and owned by the Megger Group Limited Board.
Attitude to tax risk management and governance
Megger maintains on-going application of tax governance with strong internal controls in order to substantially reduce tax risk to materially acceptable levels.
The goal is to pay the correct amount of tax at the correct time and to disclose all relevant facts to the tax authorities, while claiming reliefs and incentives where available.
The Megger CFO is responsible for ensuring that appropriate policies, procedures and systems are in place to support this policy and that the UK finance teams have the required skill to implement these policies and ensure the correct amount of tax is paid.
Megger has a Group Compliance Policy, issued to all staff when they join, which is available on the Group Intranet. The key statements within it are:
- Megger Group will operate within a sustainable framework for the benefit of all stakeholders.
- It is committed to integrity and high standards of business in everything it does.
- Megger will do business only by lawful and ethical means.
Attitude towards UK Tax Planning
Megger does not engage in aggressive tax planning.
Megger will not engage in artificial transactions, the sole purpose of which is to reduce UK tax.
Megger will adopt group structures and undertake transactions that give rise to UK tax efficiencies providing these meet with Megger’s commercial objectives and comply with UK tax legislation.
Megger seeks to maintain tax efficiency by matching profits and losses and ensuring it only pays tax once on profits. Megger looks to benefit from tax credits and exemptions where intended by law.
Megger does not presently have its own specialist Tax Manager so external advice is generally sought to ensure compliance with difficult or uncertain aspects of tax law and ensuring only tax due is paid. Advisers are used for tax planning, production of annual tax returns and correspondence with the tax authorities but Megger oversee all such matters and take responsibility for all data and correspondence produced.
Megger does not use marketed tax avoidance schemes.
The level of risk that Megger is prepared to accept
Megger has a low appetite for tax risk but does not prescribe an “acceptable level” as this will depend upon the facts of any given situation or risk.
The aim to be considered a low tax risk is achieved through the submission of all UK tax returns on a timely basis, including sufficient detail to enable HMRC to form an accurate view of the affairs of Megger and paying the appropriate amount of tax at the right time.
Megger’s approach to dealing with HMRC
Megger will comply with all relevant legal disclosure and approval requirements and all information will be clearly presented to HMRC as appropriate. Megger seeks an open, honest, transparent and cooperative relationship with HMRC, via its tax advisers.
Megger’s aim is to avoid unnecessary disputes with HMRC and thus minimise tax risk.
This UK Tax Policy is communicated to all relevant stakeholders within the UK from the Senior Management who make the commercial decisions to the staff involved in the daily tax processes, so it is embedded in the culture.