Our Tax Policy

CENTRAL ENGLAND CO-OPERATIVE LIMITED

Scope

As a Society registered under the Co-operative and Community Benefits Act 2014, Central England Co-operative is not legally required to publish a tax strategy. However, in line with our Co-operative values the Society has voluntarily published its tax policy. 

This policy applies to Central England Co-operative (the Society) and its subsidiaries. References to taxation are to the taxes and duties set out in paragraph 15(1) of Schedule 19 of the Finance Act 2016 which include; Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax and Stamp Duty Land Tax. The Society operates solely within the United Kingdom.

Introduction

Central England Co-operative recognises that taxes are important.  The UK government uses taxation in order to raise funds to provide law and order and defence of the country, education, provision of health and welfare services, supporting the arts and sustaining the country’s operational infrastructure.  

Taxation is a complex part of doing business. The combination of legislative obligations and accounting standards can make it challenging for organisations to clarify how their taxes do or don’t relate to accounting profits or losses.This can be an even more demanding exercise for large organisations like the Society.  

As a responsible business, the Societyis committed to paying the right amount of tax at the right time and disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available. Each element of the Tax Policy is consistent with the Society’s values and in particular, the value of openness and honesty as a way of working. 

Ultimate accountability for the Society’s Tax Policy and compliance rests with the Board of Central England Co-operative. In managing the Society’s affairs, the Head of Finance has responsibility for implementing its Tax Policy. The Audit Committee receives an annual report on the management of the Society’s tax affairs with any major issues arising in the intervening period brought to their attention separately. The Tax Policy is reviewed and approved by the Board on a regular basis and at least annually.

Policy

The Tax Policy commits that the Society:

  • Takes a responsible and transparent approach to the management of its significant tax issues;
  • Will not exploit or bend the rules, or use contrived or artificial structures to reduce the Society’s tax liabilities;
  • Will only engage in reasonable tax planning that is aligned with commercial and economic activity and does not lead to an abusive result;  
  • Where appropriate, take advantage of tax incentives and reliefs for the purpose for which they are intended, in order to act in the best interests of the Society as a whole whilst, at all times showing respect for the intention and letter of the law;
  • Maintains an open, honest and co-operative relationship with HMRC,  particularly on matters of tax uncertainty;
  • Ensures that HMRC is kept aware of significant transactions and changes in the business and seeks to discuss any tax issues arising at an early stage when submitting tax computations and returns to HMRC. Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.
  • Has the relevant skills and knowledge on tax matters and access to independent professional advice when necessary; and
  • Will report to its Members, as is practicable, the Tax Policy in order to foster a greater understanding of the Society’s tax obligations.
  • Will seek to reduce the level of tax risk arising from its operations as far as reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations.
  • Will provide appropriate training for colleagues who have responsibility for performing activities that relate to tax processes.

 

March 2018