Tax Strategy
Hecate Holdco Limited and its subsidiary companies including Medivet Group Limited
Tax Strategy
This document sets out the Group’s approach to risk management and governance arrangements in relation to UK taxation. This document has been published to comply with Schedule 19 of Finance Act 2016.
It has been approved by the Board of Directors of Hecate Holdco Limited and is effective for its accounting period commencing on 1st May 2023. This strategy will be re-approved and republished at least annually.
The Hecate Holdco Group takes its tax compliance responsibilities seriously and places a high value on its relationship with HMRC.
The Group recognises that the taxes paid directly to and collected on behalf of HMRC are of a material nature for UK Treasury purposes and the Group seeks to ensure the integrity of all reported tax numbers and to ensure compliance with all our tax obligations. Accordingly, the Group endeavours to comply with all relevant tax legislation, regulations and obligations regarding the filing of tax returns and payment of taxes.
Risk Management and Governance
The Group assesses its tax risks, like other business risks, based on the likelihood of occurrence and scale of the impact.
The Group seeks to manage these risks by implementing appropriate controls to mitigate the risk to an acceptable level.
If a tax risk exists due to a specific uncertainty or complexity, external advice will be sought from professional advisors. We see this as a valuable source of specific tax expertise to supplement the skills of our own finance team as appropriate.
The Chief Financial Officer has responsibility for tax at Board level and tax is regularly discussed at the Audit Committee. The Group’s tax policy, which is approved by the Board, drives the Group’s behaviour in regard to taxation and tax risk.
The day-to-day management of taxes is the responsibility of the wider finance team. This team includes tax and accounting professionals with recognised professional qualifications, and we continue to invest in their training and development. We operate under defined processes and controls in order to manage tax risks on a day-to-day basis.
Attitude to Tax Risks
Given the size and scale of the Group’s businesses tax risks arise from time to time. Where material the Board consider the level of acceptable tax risk on a case-by-case basis in the context of the Group’s wider business strategy and its stakeholders.
The Board is kept informed of any material tax risks by the CFO who regularly meets with and discusses tax risks with the Head of Tax & Treasury.
Tax Planning
The Group recognises that, on behalf of the shareholders, it is the Board’s responsibility to ensure that taxes are managed correctly, efficiently and effectively to ensure that the proper amount of tax is paid. It is considered a mandated requirement on the Group to ensure it pays the appropriate amount of tax utilising any reliefs and incentives that are available to the Group.
When considering the structure of transactions, the Group evaluates the options based on commercial rationale, simplicity and reputational risk in terms of both fairness and morality.
External advice is sought to support the Chief Financial Officer and Head of Tax & Treasury and provide technical advice to the Group.
Any tax planning arrangements require Board approval.
HMRC Relationship
The Group aims to maintain an effective, collaborative and co-operative relationship with HMRC.
The Group is committed to resolving any outstanding matters with HMRC in a timely fashion.