Tax Strategy

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Tax Strategy

 
Introduction

Smyths Toys Group is a responsible and compliant taxpayer. We collect and pay a substantial amount and variety of taxes and recognise the importance of this as part of our economic contribution to the communities in which we operate.  

Group Tax Policy

Our policy and approach to our tax obligations is governed by the same core values that guide all aspects of how we do business and interact with our customers, suppliers and partners. These include honesty, always doing the right thing, keep it simple, responsibility and action. We are committed to:  

  • Paying the right amount of tax in accordance with the tax laws and practice in all territories in which we operate.
  • Paying all taxes on time.
  • Disclosing all relevant facts and information to the tax authorities wherever we operate.
  • Having open, transparent and constructive relationships with the tax authorities.
  • Proactively seeking guidance from professionals and/or the local tax authorities on any area of uncertainty to manage tax risk to the very lowest margin.

As a cost of doing business, tax is considered in all major business decisions. We do not undertake any business for the sole purpose of achieving a tax saving or accessing a tax relief. 

Our tax policy is set and reviewed by the Board. The Director of Corporate Services is responsible for ensuring the Group’s adherence to this policy and updating the Board regularly on tax policy matters and group compliance. 

Approach to Tax Risk & Governance

Smyths Toys Group acknowledge that there will always be a level of risk given the size of our business and the complexity of tax law and practice. We adopt a low risk tolerance approach to all tax compliance. Internal audit functions are in operation to proactively identify, evaluate and manage tax risk across the business. 

Responsibility and accountability for the Group’s tax affairs lies with the Director of Corporate Services who works with qualified internal finance team members looking after the day to day management of the Group tax affairs. Where there is uncertainty or complexity in relation to any area, external professional advice will be sought and / or discussions with the relevant local tax authorities to ensure compliance in our approach.

We adhere to the tax accounting controls and formal procedures under the UK Senior Accounting Officer (“SAO”) legislation which the SAO to confirm to HMRC on an annual basis whether our internal tax processes are appropriate.

We deal with HMRC and all Revenue authorities openly, honestly and in a spirit of co-operative compliance.

This tax strategy is published in line with our statutory obligation under Para16(2), Schedule 19, Finance Act 2016 for all companies in the Smyths Toys Group.