This document published by Fridgemaster on 18th January 2018, complies with its duty under Paragraph 16(2) of Schedule 19 of Finance Act 2016 to publish a group tax strategy for the year ended 31 December 2018.
About the Business
Fridgemaster is part of the Hisense Group (“the Group”), a world leader of flat panel TVs, household appliances and mobile communication devices and is recognised as a global top 10 player by the business intelligence industry and research institutions.
Fridgemaster is a Company trading name incorporated in the United Kingdom. The purpose of the Company is to operate as a product distributor.
The group recognise its responsibility to deliver value to shareholders, as well as paying taxes arising from its business activities which contribute to the societies where it operates.
Fridgemaster’s tax strategy requires that all tax obligations are complied with in the UK. In addition, the Company aims to align the tax payment outcomes with the commercial reality and where profits are generated.
Tax Decision Making Process and Internal Governance
Fridgemaster is responsible for the compliance of tax issues in the UK. In terms of the internal approval procedure, the Company holds the decision-making power for localised tax related matters and report to the Group.
With the constantly changing tax environment, Fridgemaster has an emphasis on compliance and aims to keep up-to-date with the relevant knowledge and skills to identify, assess, manage and mitigate tax risk in order to be compliant in the UK.
The day to day management and implementation of Fridgemaster’s tax affairs is provided by the UK finance team. Compliance matters are dealt with both in-house and through outsourced professional services firms to ensure accuracy.
Responsibility for Fridgemaster’s tax strategy and policies rests with the Company’s General Manager.
Attitude to tax Planning and Management
The Company is not aware of any group wide tax planning scheme and the Group has a strong focus on tax compliance as compared to tax planning.
Fridgemaster aims to
- Meet all legal requirements, submit all relevant tax returns and make accurate tax payment on time;
- Consider the group’s reputation, brand and corporate and social responsibilities in terms of tax;
- Work with HMRC and other relevant tax authorities in order to fully comply with the local tax rules.
- With the assistance of external advisors, keep up to date with any recent developments in tax.
Tax Risk Appetite and key Risks
Fridgemaster has a low appetite for tax risks.
The key tax risks for Fridgemaster are:
Fridgemaster’s tax strategy aims to balance the needs of their key stakeholders. Their stakeholders have a clear expectation of minimising risk. As such, tax governance is adapted to manage impact on reputation and align this to the low risk appetite.
Compliance and reporting risk
Non-compliance with the relevant tax rules in jurisdictions where Fridgemaster operates is a key risk and the group has a strong focus on the local compliance in each jurisdiction.
In the UK, the Company actively manages this risk by ensuring its internal staff are equipped with the essential knowledge and skills to carry out the relevant work and obtaining external assistance from professional firms.
Changes in tax legislation and other regulations
New regulations or changes, whether they are directly or indirectly linked to changes in tax treatment (such as Brexit), are taken seriously by Fridgemaster.
The Company evaluates proactively the tax impact of any new regulations, by keeping up-to-date with the latest publication. They also actively work with external professional bodies by obtaining appropriate updates, attending relevant seminars and having continuous discussion with consultants with technical expertise.
Working With HMRC and other Tax Authorities
Fridgemaster aims to have a transparent and cooperative relationship with HMRC and other tax authorities.
In the UK, the Company does not have a CRM with HMRC. However, the Company has regular correspondence with HMRC. In addition, it engages with external professional expertise to ensure compliance and accuracy. The Company is committed to prompt disclosure and transparency in all tax matters with HMRC and recognise that there will be areas of different legal interpretations between the Company and HMRC. In such situations, the Company will engage with HMRC in a proactive manner to achieve an early resolution.