OVO Group Tax Strategy Statement
The purpose of this tax strategy document is to set out OVO Group’s policy and approach in conducting its tax affairs and managing tax risks for the year ending 31 December 2022. This document was approved by OVO Group’s Board of Directors on 19 May 2022 and is applicable for all entities in the OVO Group (OVO Group Limited and its subsidiaries) for the year ending 31 December 2022. This policy will be reviewed annually, and any amendments will be approved by the Board of Directors.
Tax Risk Management and Governance
OVO Group’s tax risk management and controls are formally captured in a tax risk register. Tax governance is overseen by the Board, through the Risk and Audit Committees. The Chief Financial Officer (or equivalent individual) as primary responsibility for managing tax risk, supported by the Head of Group Tax and external consultants.
OVO Group’s appetite towards tax risk is low. We are committed to compliance with our statutory tax obligations and seek to ensure that our tax arrangements remain consistent with a low risk assessment, both in financial and reputational terms.
Tax compliance for the Group is either outsourced to reputable external advisors or managed internally by suitably qualified tax and finance personnel in liaison with external advisors as required.
Tax Planning and Tax Risk
We aim to ensure that our tax position in any planning activity is consistent with the spirit as well as the letter of tax law and we will take external advice to confirm this if necessary. As such we do not seek to structure transactions in ways that are led primarily by tax structuring.
With regards to our dealings with third parties, we do not promote tax avoidance or aggressive tax planning arrangements and we have put in place reasonable prevention procedures to prevent the facilitation of tax evasion by any associated persons, proportionate to the level of risk, and will continue to monitor these for effectiveness.
Relationship with HMRC and relevant tax authorities
We engage with HMRC and other relevant tax authorities honestly and with integrity, based on mutual trust and co-operative compliance. We feel this is the best way to ensure that we pay the right tax at the right time and to maintain a good working relationship. We endeavour to engage with tax consultants and HMRC and other relevant tax authorities on a real time basis in any areas of material uncertainty. This includes us disclosing and seeking clearance on significant matters in order to gain agreement on the tax implications.
In this context, OVO Group utilises all legitimate exemptions and allowances in accordance with normal business practises and HMRC guidance.
We consider that the above statement complies with OVO Group’s obligation under paragraph 16(2), Schedule 19, Finance Act 2016.