UK Tax Strategy
The publication of this strategy statement is regarded as satisfying the statutory obligation under Para 19(2), Schedule 19, Finance Act 2016.
The tax strategy and principles set out herein applies to all UK taxation matters for all of the UK subsidiaries of Metro Group, which are listed in Appendix 1.
This tax strategy has been approved by the Metro Corporate Group Tax Team.
Pursuant to the UK Finance Act 2016, Schedule 19 Part 2, par. 17(1), the following principles are provided:
(a) The approach of the Metro UK Group to risk management and governance arrangements in relation to UK taxation;
(b) the attitude of the Metro UK Group towards tax planning (so far as affecting UK taxation);
(c) the level of risk in relation to UK taxation the Metro UK Group is prepared to accept;
and (d) the approach of the Metro UK Group towards its dealings with HMRC.
Tax strategy:
The Group’s tax strategy applies to all UK companies and employees and communicates its intent to act as a good corporate taxpayer by effectively managing its tax risks and governance arrangements.
The Group aims to ensure that all its businesses follow responsible tax practices. Accordingly, the tax strategy sets the core principles of compliance and transparency for the management of the Group’s tax affairs.
The Group seeks to record its profits across the subsidiary companies around the world on an arm’s length basis in accordance with internationally accepted transfer pricing principles.
Its key strategic objectives in relation to tax are as follows:
• To comply with all applicable laws and regulations in relation to all taxes;
• To pay the amount of tax owed at the time it falls due;
• To ensure the Group has suitable governance to deliver appropriate tax accounting and reporting;
• To maintain a transparent and collaborative relationship with the tax authorities
Risk management and governance
Management of the Group’s UK tax affairs is undertaken by the individual finance and accounting employees responsible for the companies listed in Appendix 1.
The Group seeks to manage its UK tax obligations in compliance with all applicable tax laws and regulations, as well as in line with internal guidelines and SOPs.
Tax laws are often complex, which creates a risk of incorrect interpretation. In order to reduce such uncertainty, the Group may take various actions, including obtaining external tax advice to ensure the robust interpretation of tax laws and practices.
Annual external audits are to ensure that the legal requirements are correctly met and tax risks are minimized.
Attitude to tax planning and level of risk
UK tax planning arrangements are aligned with the operational needs of the business (“tax follows business”). The Group takes a low risk approach to tax planning and UK taxation.
Working with HM Revenue and Customs
The Group aims to build positive working relationships with tax authorities by cooperating in a constructive, open, and timely manner. The Group cooperates with HMRC, and other tax authorities where required, to provide information that is relevant or required by law. The Group makes tax payments and submits all required tax returns and disclosures in a timely manner.
APPENDIX 1 – UK Subsidiaries of Metro
Makro Limited
Makro Pension Trustees Limited
Makro Cash & Carry UK Holding Limited
Classic Fine Foods Group Limited
Classic Fine Foods Holdings Limited
Classic Fine Foods UK Limited
Western United Finance Company Limited
Caterite Food and Wineservice Limited
Box Clever Cumbria Limited
Grapevine, The Wineservice Company Limited