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 31st December 2020. This document was approved by OVO Group’s Board of Directors on 29 January 2020 for year ending 31st December 2020. In line with HMRC’s guidance, 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. The Group risk register is overseen by the Board and the Chief Financial Officer has primary responsibility for OVO Group’s taxation risk register, supported by the Group Finance Director, Group Head of Tax and external consultants.
OVO Group has a low risk appetite towards tax risk management and governance processes. 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 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 all reasonable prevention procedures to eliminate 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 OTHER 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 para 16(2) and para 25 (1), Sch 19 Finance Act 2016.
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