UK Tax Strategy

CLIPPER LOGISTICS plc GROUP TAX STRATEGY

Scope
This UK Tax Strategy sets out the approach of Clipper Logistics plc (Clipper or the Group) to risk management and governance arrangements in relation to UK taxation. It applies to Clipper and all its UK subsidiaries.

The Group predominantly operates in the UK. It also has a number of subsidiaries in other European jurisdictions, which collectively accounted for less than 7 per cent of the Group’s total revenue in the year ended 30 April 2019.

Our tax strategy
The Group is committed to complying with all applicable tax-related laws and disclosing all relevant facts to the tax authorities. We seek to have a constructive and open relationship with HMRC and are committed to paying the correct amount of tax at the appropriate time. This applies to all taxes, including corporation tax, value added tax and employment taxes.

UK tax risk management and governance
This tax strategy, which has been approved by the Board of Directors, is the responsibility of the Deputy Chief Financial Officer. The strategy includes the implementation of appropriate policies, procedures and systems. He is supported by suitably qualified individuals within the Group’s central and divisional finance teams. External tax advisers are engaged to support the internal finance teams where required.

The Group seeks to identify, evaluate, monitor and manage tax risks associated with our business activities. A risk register is maintained which sets out the mitigating actions taken to manage tax risks. The external advisers ensure our teams are kept up to date with changing tax legislation. Our policies and procedures are revised on an ongoing basis to reflect legislative changes.

In order to adhere to our principles, any structuring undertaken will have commercial and economic substance. We will take advantage of available tax incentives, reliefs and exemptions in line with, and in the manner intended by, legislation. We will not enter into transactions we consider to be contrived, artificial, contrary to the spirit of the legislation or whose main purpose is to create an abusive tax result.

Relationship with HMRC
The Group is committed to the principles of integrity, transparency and openness and seeks to apply these in its dealings with the UK tax authorities. Where possible we seek constructive and early discussions on any new tax matter to obtain certainty. We engage positively when discussing any differences in legal interpretation between ourselves and HMRC.

The Group seeks to pay its UK taxes at the appropriate times and provide any relevant information requested by the tax authorities.

The Group regards publication of this Tax Strategy as complying with the duty under paragraphs 16(2) and 22(2) of Part 2 of Schedule 19 of the Finance Act 2016 for the financial year ending 30 April 2020.

Updated September 2019.