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Tax Policy - Financial year ended 31 March 2021
This tax policy applies to the period of 1st April 2020 to 31st March 2021 and was approved by the Board of Combined Independent (Holdings) Ltd (‘CIH’) on 7th April 2021. This is an annual policy and will be reviewed annually in March/April each year. The publication of this policy fulfils the group’s obligations under Para 16(2) of Sch 19 FA 2016.
The group consists of Combined Independents (Holdings) Ltd and Euronics Ltd. Combined Independents (Holdings) Ltd are recognised as mutual.
The principal activity of the group is purchasing electrical goods on behalf of its shareholders and Associate Members who are independent electrical retailers. Electrical retailers who trade with the group must purchase a share in CIH if they wish to become a full member. If an electrical retailer does not want to take advantage of the full benefits of membership, they can join as an Associate Member, and therefore do not have to purchase a share. Any benefits gained from economies of scale by the group ultimately result in benefits to the members’ own businesses.
The strategy applies to 'UK taxation' as defined within the UK tax strategy legislation (Para 15, Sch 19 FA 2016).
How tax risks are managed:
- Our Board has overall responsibility and accountability for tax and adherence to current tax laws. Any areas of concerns or contention are communicated to the Board during regular meetings.
- All aspects of tax are dealt with by appropriately qualified and experienced people. The SAO (Senior Accounting Office) is currently Head of Finance and manages all areas of tax within the business. This role is supported by the Finance Manager and Management Accountants. We use SAP as the main accounting system.
- Internal controls exist for day to day practice, and all returns are validated and authorised by the SAO.
- We have a robust and focussed approach to managing tax within the business. However, where matters of complexity arise we apply a collaborative approach to engaging with other parties and may seek guidance and/or clarification from either HMRC or our advisors. We operate open and transparent relationships with all outside agencies.
The Company tax risks
- We adopt a low risk approach to tax and do not engage in artificial tax arrangements.
- We do not undertake any transactions where we consider the main purpose, or one of the main purposes is realising tax savings.
The Company attitude to tax planning
- Tax planning opportunities are evaluated to ensure the company only engages in tax planning that is aligned with both our principles and commercial objectives and that we consider are within the spirit and letter of the law.
- Our approach to tax is to pay the correct amount of tax at the right time, under all relevant laws and regulations.
Working with HMRC
- Our relationship with HMRC is open and transparent.
- We adopt a collaborative approach to our interactions with tax authorities.
- Where there is uncertainty on a tax matter, we will discuss the issue with the relevant tax authority to fully understand our tax obligations and seek to agree the position wherever possible before we adopt the relevant treatment.
- We are committed to disclosing relevant information to enable tax authorities to carry out any review and will respond to queries and requests for information in a timely fashion.
Section 172 (1) Statements year ended 31 March 2020
For Combined Independents (Holdings) Limited documentation click here and Euronics Limited documentation click here.