Prima Ekuiti (UK) Limited Company - Tax Strategy
This document, approved by the Board of Prima Ekuiti (UK) Limited, sets out the company’s approach to conducting its tax affairs and dealing with tax risks for the year ending 31 December 2018.
Prima Ekuiti is committed to:
Following all applicable laws and regulations relating to its tax activities.
- Maintaining an open and honest relationship with the tax authorities based on collaboration and integrity;
- Ensuring that the tax strategy adopted is consistent with the company’s overall strategy;
- Applying diligence and care in our management of tax risks, and ensuring that our tax governance is appropriate; and
- Using incentives and reliefs to minimise the tax cost of conducting our business while ensuring that these reliefs are not used for purposes which are knowingly contradictory to the intent of the legislation.
Risk Management
Our appetite for tax risk is low. Our business model and operating structure is straightforward and not subject to significant judgement in the application of tax law. We do not seek to artificially manipulate our business affairs in order to unreasonably minimise our tax liabilities and aim to pay the right amount of tax in accordance with the spirit of the law in all jurisdictions where we have economic substance.
Tax risks are assessed on a case by case basis, allowing the company to arrive at well-reasoned conclusions on how each individual risk should be managed. Where there is uncertainty in how the relevant tax law should be applied, external advice may be sought to support the company’s decision making process.
When reviewing the tax risks associated with a specific decision or action, the company ensures that the following are considered:
- The legal and fiduciary duties of directors and employees;
- The requirements of any related internal policies or procedures;
- The maintenance of the company’s corporate reputation, having particular regard to the way we interact with the communities around us;
- The tax benefits and impact on the company’s reported result compared to the potential financial costs involved, including the risk of penalties and interest; and
- The wider consequences of potential disagreement with tax authorities, and any possible impact on relationships with them.
Tax Planning
While we will run our business in a cost effective manner in line with our obligations to our shareholders and clients, in terms of tax, we will only utilise legitimate tax reliefs for the purposes for which they were intended by Parliament. We do not:
- engage in aggressive tax planning;
- seek to structure transactions in an artificial manner whereby results are inconsistent with the underlying economic consequences; or
- promote tax avoidance or condone abusive tax practices which would contravene our ethics and culture or the law.
We believe in safeguarding our reputation and our relationships with clients, shareholders and tax authorities alike and we are not subject to undue shareholder influence.
We will seek external tax advice where appropriate.
Approach Towards Dealings With HMRC
It is the company’s general policy to be transparent and proactive in all interactions with HMRC through regular meetings and communications with HMRC.
We have an open, honest and positive working relationship with HMRC. We are committed to prompt disclosure and transparency in all tax matters with HMRC. We recognize that there will be areas of differing legal interpretations between ourselves and HMRC and where this occurs we will engage in proactive discussion to bring matters to as rapid a conclusion as possible.
Any inadvertent errors in submission of tax returns and tax computations to HMRC are fully disclosed as soon as reasonably practicable after they have been identified.
Prima Ekuiti (UK) Limited regards the publication of the information set out above as complying with the duty under paragraph 16 of Schedule 19 of the Finance Act 2016 (duty to publish a tax strategy).