Mulberry Group plc -Tax Strategy Statement
This statement sets out the strategic tax objectives of Mulberry Group plc and its subsidiaries (“the Group” or “Mulberry”) and the Group’s approach to conducting its tax affairs and dealing with tax matters for the year ending 31 March 2020. The following information is provided in compliance with the requirements of The Finance Act 2016, Schedule 19, paragraph 16(2).
The Group’s tax strategy, which is regularly reviewed by Mulberry’s Board of Directors (“the Board”), is to pay the appropriate amount of tax in each jurisdiction in which the Group operates, in accordance with local and international law and practice. Mulberry’s business activities incur a variety of business taxes including corporate income taxes, employment taxes, social security, customs duties and other taxes. In addition, the Group collects and pays employee taxes and indirect taxes such as sales and consumption taxes on behalf of government agencies. The Group operates policies and governance procedures to ensure compliance with UK and international tax law.
Mulberry maintains a low risk tax strategy to ensure that it pays the right amount of tax at the right time, and is committed to:
- following all applicable laws and regulations relating to its tax affairs;
- maintaining an open relationship with tax authorities in all tax jurisdictions in which it operates;
- ensuring that its tax strategy is consistent with the Group’s legal and statutory structure;
- a zero-tolerance policy for tax evasion and the facilitation of tax evasion; and
- applying diligence in its management of tax risks, to ensure appropriate governance is applied.
In accordance with the Group’s continued commitment to transparency, and the UK legal requirements, this document sets out the Group’s:
- approach to managing tax risk;
- attitude to tax planning;
- acceptable level of tax risk; and
- approach towards dealings and relationship with HMRC.
Managing tax risk
Mulberry has clear tax policies, procedures and controls in place which are overseen by the Group Finance Director, and monitored and reviewed by internal, and where necessary, external tax specialists. Substantial tax matters are reported to the Board when appropriate. The Group maintains a low risk tax policy and considers that it is compliant with UK and international tax guidelines and legislation. Any perceived tax risks are assessed on an issue by issue basis to enable the appropriate conclusion to be reached as to how to manage that risk. Where there is any uncertainty, external advice is ordinarily sought to support the Group’s approach.
Attitude to tax planning
The Group’s attitude to tax planning is low risk and driven by the commercial needs of the business, taking into account any future developments, and aims to achieve a tax efficient outcome whilst ensuring compliance with all relevant legislation. The Group applies the OECD transfer pricing guidelines to intercompany transactions and has documented processes that have been reviewed by external specialists to ensure compliance with international requirements. To ensure that tax treatment is correct, external tax advice may be sought in respect of material transactions or where the Group Tax Department does not have the necessary expertise required in a specific area.
The Group regularly reviews tax risks and controls. The Group operates policies to ensure compliance with tax laws and regulations both in the UK and internationally, and to ensure that it identifies and mitigates tax risks to the low level of risk that the Group is prepared to accept.
Dealing with and relationship with HMRC
The Group aims to make a positive difference to its people, environment and the communities in which it works, and these principles of integrity are reflected in its relationship with tax authorities. In addition to operating with integrity, where possible and appropriate, the Group seeks to be proactive and co-operative with tax authorities to ensure the efficient resolution of issues as they arise.
The Group is committed to making fair, accurate and prompt disclosure in correspondence and returns, and to respond to queries and information requests in a timely fashion. Reliefs and incentives are claimed where available and in accordance with applicable legislation.
Mulberry does not currently have a Customer Compliance Manager (“CCM”) at HMRC.
31 March 2020