Group Tax Strategy

Tax strategy for the financial year ended 31^st March 2023.

The Chief financial officer (CFO) conceives the tax strategy with the help of board of directors. The CFO is responsible for implementing the Company’s tax strategy in compliance with relevant laws with oversight of the Board.

The tax strategy is applied consistently across all its businesses and the board of directors’ review and update the strategy as and when it is necessary to induct the impact of relevant changes in its business.

Integrity is one of the important values at the company and we do not accede to any form of tax evasion or fraud by our employees.

We conduct our businesses with a sense of strong responsibility and accountability. Therefore, we pay the right amount of tax with a strong allegiance to compliance with all relevant tax laws and regulations.

The tax strategy is prepared and implemented in consonance with financial and internal control frameworks which govern the commercial operations of the company.

Our Financial Controller monitors the day-to-day application of the tax strategy with the help of the finance and accounts team and external advisors. The Board of directors are apprised of recent tax developments, tax disputes and status of tax assessment by the CFO.

Tax risk could emanate from failure to comply with filing of tax returns and other tax related reports and paying the right amount of taxes before the expiry of statutory deadline.

The Company may be exposed to tax risk due to wrong interpretation of relevant tax laws and or/ regulations in the business transactions. External tax advisors are engaged wherever specialist guidance is imperative. It could be for merger, acquisitions and disposal transactions and interpretation and application of new law. At the end, CFO and the in-house teams are responsible for tax-related decisions.

Given the nature and reach of its operations, the Company is exposed to multiple commercial risks. Tax risk is one of the commercial risks and it can be mitigated effectively by collecting and paying the correct amount of tax in accordance with relevant local reporting and disclosure requirements.

The Company understands that finance team needs to be involved at an early stage to deliver the most value from the tax advice provided. 

We strive to claim tax relief and exemption(s) appropriately.

We try to optimise tax cost considering inherent risk in every commercial transaction.

How much tax risk is the Group prepared to accept?

Given the ever-changing laws and rules, the Company considers tax risk as one of the primary risks. We always believe in complying with applicable tax laws and regulations. Enhanced compliance awareness really helps in managing the tax affairs in the most efficient way in accordance with the business’ objectives.

We treat tax risk on par with other important business risks.  We are cognisant of the fact that tax risk directly impacts reputational risk as well. It becomes more important for us to comply with tax laws and rules in the manner consistent with our wider tax strategy.

Tax risk is purely evaluated on a transactional basis. We do not impose any limit on the amount of acceptable tax risk. We analysis the materiality of the amount and at the same time, we evaluate the cost of mitigating tax risk.

HMRC assess the tax risk of the company by evaluating the amount of tax it pays and collects on HMRC’s behalf.

We strive to maintain an open and meaningful relationship with HMRC in the UK. We do not hesitate to seek clarification and advice from HMRC if we have any doubts and concerns about the tax payments/appeals/assessments.