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.
Our 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. Where appropriate, we seek advice from industry experts and external advisors to ensure we are fully compliant. Part of this compliance process is knowing how the business transactions and activity create tax risk. This knowledge has been obtained over many years via a comprehensive understanding of the tax attributes of the business. We continually develop, maintain and improve processes and controls to ensure all tax risks are highlighted, managed and controlled. Where we identify material tax uncertainties, full disclosure is provided to the tax authorities.
Our approach to the identification and managing of risk
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 minimised.
A principle of subsidiarity is applied; each Business Unit and Central Support Function is responsible for maintaining an effective system of risk management and internal control, operating appropriate governance over this system and reporting on risk and internal control system effectiveness.
Responsibilities for operating and monitoring risk management and internal control activities are clearly documented and communicated across the company. We ensure that our employees undertake necessary education and training to ensure an appropriate awareness of roles, responsibilities and accountabilities.
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.
Our approach to 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 whilst maintaining our reputation as a responsible corporate citizen
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).
In this context, tax risk is the creation of tax liabilities that are not intended by legislation. We utilise tax incentives, exemptions and reliefs where they are relevant to our business and apply them in the manner intended by the Government. We ensure transactions between Dalkia Group Limited and its subsidiaries are conducted on an arm’s length basis.
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 HMRC
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.
Where tax legislation is unclear, or may be considered unclear, we disclose our position and uncertainty to HMRC. This approach is applied proactively, to both current and future events and transactions. We continually review our business processes to ensure they comply with tax legislation. Where these reviews discover errors, we share these with HMRC to agree actions and their impact on past, present and future tax liabilities. This Tax Strategy is published annually but periodically reviewed by the tax team to ensure it keeps ahead of best practice and governance protocols; any amendments will be approved by The Board.
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: 24 April 2025