Our Tax Strategy
This strategy document applies to London Hygienics whom is trading name of Northkin Limited.
Employees are required to comply with policies including a set of key tax principles.
Our aim is to pay the correct amount of tax, at the required time and in the countries that produce those profits. To achieve this we:
- Understand the jurisdictional tax laws and comply with the spirit as well as the letter of the law.
- Discern how and where value is created within and ensure that transfer prices accurately reflect this.
- Prepare and file all tax returns on time and in the correct format.
- Maintain records of all tax documents as prescribed by the tax laws and/or which are suitable for review by tax advisors.
- Employ qualified accountants and supplement our in-house knowledge with third party professional advice.
The wording of tax laws can be equivocal and require careful judgement to reach the appropriate tax treatment. To ensure that judgement is exercised consistently within London Hygienics, we have detailed seven tax principles that will guide decision-making - the outcomes of which will be in line with acceptable corporate tax practice.
TAX GOVERNANCE FRAMEWORK
Our tax governance framework aims to mitigate tax risk through our key principles:
We aim to adhere to all applicable tax laws - both in terms of their rules and the principles governing them.
Our approach to tax is transparent and outlined clearly in our tax principles.
III. Transfer pricing
Our objective is to pay the true amount of tax which appropriately reflects where value has been created.
We do not use any tax structures that are intended for tax avoidance and are not in line with the principles which govern the letter of the law.
V. Tax rulings
When dealing with complex tax areas, we may contact the relevant tax authority for confirmation of the correct tax treatment. In doing so, we will disclose all of the facts.
VI. Relationships with tax authorities
We aspire to build open and honest relationships with all tax authorities based on mutual respect.
VII. Accountability and governance
Compliance with the group Tax Principles are at the forefront of decision making. Mechanisms are also in place to provide a platform for employees to voice any concerns confidentially.
MANAGING TAX RISK
As a group, we are subject to taxation in the countries in which we operate. The tax legislation in these countries differs and is often complex and subject to interpretation.
Tax risks are managed through our 'Tax Risk Register'. The register sets out the key tax risks and the mitigating actions that London Hygienics take to manage and monitor them.
TAX FUNCTION, RESPONSIBILITIES AND ORGANISATION
The responsibility for The London Hygienics compliance sits within the finance function which reports to the Director. Advice is sought from external advisors on material transactions and whenever the necessary expertise is not available in-house. We continuously invest in the team's ongoing professional development.