Tax Strategy Statement
Introduction
The Finance Act 2016 requires large UK groups or sub-groups, companies or partnerships to publish a UK Tax Strategy. We regard this Tax Strategy statement as meeting our obligations under paragraph 19(2), Schedule 19, Finance Act 2016.
Our approach
Dalkia Group Limited and its subsidiaries (the Group’) is committed to managing its tax affairs in a responsible and transparent manner complying with all relevant tax legislation, having due regard to our wider reputation and corporate responsibilities.
Governance
The Group seeks to ensure a consistent and robust approach is adopted to managing its tax affairs across all its businesses. This is supported by the Group’s Business Ethics Policy and associated Code of Conduct, which require all employees to conduct themselves in a fair, proper and ethical manner and in compliance with applicable law, regulations and professional standards.
We operate an effective tax control framework, focussing on having the right control environment, risk identification, control activities and monitoring of our compliance with relevant legislation and our business strategy.
The CFO has overall responsibility for the tax strategy, tax risk management and the governance framework which supports the tax strategy. Day to day management of the tax strategy is delegated to the finance function within each business unit in the organisation structure, who report to the CFO.
In order to meet our tax requirements across the Group we employ appropriately qualified and trained professionals with the right level of tax expertise and knowledge of our businesses, and we take appropriate advice from professional firms.
Commitment to Tax Compliance
The Group strives to comply with its tax compliance, filing and payment obligations globally.
We aim to act with integrity and transparency in all tax matters with a commitment to full compliance with all tax legislation and full disclosure to tax authorities in the jurisdictions in which we operate.
Risk Management
The Group has the appropriate systems and procedure in place to identify, assess and manage tax risk.
The Group is proactive in managing all financial risks, including tax risks, and utilises a robust governance framework throughout its business to ensure that there is the appropriate level of oversight and Board engagement. We manage tax risks to ensure they are highlighted and monitored and the most significant are proactively managed and mitigated.
Responsibilities for operating and monitoring risk management and internal control activities are clearly documented and communicated across the company. Education and training to ensure an appropriate awareness of roles, responsibilities and accountabilities are available for employees.
The Board of Directors regularly evaluate the effectiveness of processes for identifying and managing risks to the achievement of Dalkia Group trading objectives and challenge and approve the Group trading risk profile.
Tax planning
We aim to manage our tax affairs in an efficient and pro-active manner to ensure our tax attributes maximise value for our shareholders.
The Group pays UK tax in accordance with all laws and regulations. We do not participate in any artificial schemes or arrangements that are primarily designed and focused on reducing tax liabilities. We only undertake tax planning to enable the elimination of tax risk created by our day to day business operations. (i.e. to avoid suffering double taxation or unexpected tax costs arising from commercial activities).
We utilise tax incentives, exemptions and reliefs where they are relevant to our business and apply them in the manner intended.
External advice may be sought in relation to areas of uncertainty or complexity and to ensure that our activities are in line with our tax strategy.
Our approach to dealings with tax authorities
We work together with the tax authorities in a style that is open and honest in order to build positive, long term relationships.
We aim to liaise with tax authorities in real-time, maintaining regular contact and dialogues to ensure complete transparency of our tax liabilities and obligations.
We ensure that the tax authorities are kept up to date on significant transactions or changes within the business and disclose all relevant facts including details of any transactions or issues where the tax treatment is unclear. This approach is applied proactively, to both current and future events and transactions.
Transparency
We do not tolerate tax evasion or facilitation of tax evasion by persons acting on our behalf.
We operate with integrity in our compliance and reporting, ensuring an open, honest and transparent relationship with all relevant stakeholders including tax authorities, business partners, customers, employees and analysts.
Published: 22 March 2024