Lamex Food Group Ltd - Tax Strategy policy
Introduction
Lamex Food Group Limited (“Lamex”) is the UK holding company of an international group (the “Group”). The Group partners with some of the world’s largest food companies, bringing global procurement and logistical excellence to manufacturers around the world. It is a worldwide network with over 63 experienced food traders operating from 23 offices in 15 countries.
This document has been approved by the Board of Directors (“Board”) of Lamex and sets out the Group’s policy and approach to conducting its global tax affairs and dealing with tax risk. The document will be periodically reviewed, and any amendments will be approved by the Board. This current strategy is effective from 9th March 2021 and the Board considers it current at its financial year end on 31st of March 2023. This will remain effective until any amendments are made by the Board.
The Group conducts its UK tax affairs in line with its global tax strategy and Lamex regards the publication of this document as complying with the requirements of Finance Act 2016, Schedule 19, paragraph 16(2).
Our business activities are subject to various taxes, including corporate income taxes, employment taxes, property taxes and environmental taxes. We also collect and pay employees taxes and indirect taxes such as VAT and Custom Duties.
Our Tax Strategy
We recognise that tax policy and tax management are a significant part of running a sustainable and responsible business.
We commit to act responsibly in relation to our tax affairs, to fulfil our compliance and disclose obligations and to operate in accordance with all relevant international and local laws and regulations. We aim to ensure that we pay the right amount of tax in each country in which we operate, and we follow the OECD Guidelines for Transfer Pricing.
Risk management and governance
Overall responsibility for our tax strategy rests with the Board. The principles of this strategy are adhered to and discussed at regular management and shareholder meetings.
We are committed to be a compliant taxpayer in the countries where we operate by maintaining and monitoring robust internal processes and controls, designed to minimise the risk of errors arising which could impact the amount of tax we pay.
Our finance teams are fully aware of the tax strategy and ensure all deadlines are met for each submission and the Senior Accounting Officer reviews the submissions before they are sent to the relevant tax authorities.
Tax Planning
Decisions relating to taxation are based on sound commercial objectives in line with our overall business strategy. We do not adopt extreme or aggressive interpretations of law or practice which by their nature have associated high risks of failure or reputational damage.
We seek appropriate tax advice from professional reputable firms where necessary to support the Group’s decision-making process and to assess tax risks to ensure compliance with applicable laws.
We may use Government approved incentives and reliefs to minimise the tax costs of conducting our business activities but will not use them for purposes which are knowingly contradictory to the intent of the legislation.
The level of risk that the Group is prepared to accept
We have a low tolerance to tax risk, and we will not engage in any tax avoidance schemes.
When reviewing the tax risks associated with a specific decision or action, the Group ensures that the following are considered:
- The legal and fiduciary duties of Directors and employees
- The related financial and operational risks
- The maintenance of the Group’s business and corporate reputation and the potential impact on our relationship with any tax authorities.
Our approach to dealing with the tax authorities
We will seek to work proactively with local tax authorities and aim to build constructive relationships with them by keeping an open and honest dialogue.
Where necessary we will seek guidance on uncertain tax positions insofar as they relate to our tax affairs and our aim would be to strive for early agreement of any disputed matters.
In the UK we seek to develop and maintain a positive, open and transparent working relationship with HMRC via our Customer Relationship Manager.