Sinclair Motor Group UK Tax Strategy
This tax strategy applies to all companies within the Sinclair Motor Group, a list of which are shown in Appendix 1. All companies are part of the Group headed by Sinclair Motor Holdings Limited and are all registered and based in the UK.
This document will undergo continuing review and updates as and when considered appropriate. It is effective for the financial year ending 31 December 2017 and this is intended to comply with the requirements of Schedule 19 of the Finance Act 2016.
Managing Tax Risk
Sinclair Motor Holdings Limited will ultimately bear responsibility for ensuring tax compliance across all taxes in the UK and the management of tax risks identified. The on-going management is provided by the Heads of Departments who report into the Board monthly on all companies in the Group.
The tax risks identified have been:
Compliance and reporting
This area of risk covers failures such as late submissions or inaccurate returns as well as the overall maintaining of a system which can identify such risks before statutory timelines expire. It also refers to legislative changes that affect our business on a year by year basis as well as that of our customers.
Transactional
This risk applies to transactions being carried out or advice given where inappropriate or no consideration of the potential tax consequences has been considered or indeed where instructions given have not been carried out properly.
Reputational
The reputational risk is one which applies to outside of the Group rather than just the internal financials, and how this potential risk may affect our relationships with customers, the general public and HMRC.
These risk areas are managed as any other risk identified by the Group.
Group policy dictates that there are regular updates for the Heads of Departments and encourages clear open communication of any changes across the Group.
The continuing professional development of key employees is undertaken across the companies and changes in legislation are disseminated to the policy makers in order to ensure compliance.
The Finance department meets regularly to communicate historical transactions as well as to discuss current issues and planned events. Where any perceived tax risk is associated with these, a review of the whole transaction is undertaken before sign off.
It is recognised that the Group does not always have the requisite experience or knowledge in-house, and in such circumstances professional advice is taken from reputable external advisors.
The Group is keen to protect its cherished relationship with its customers and sees that compliance with the authorities, filing of returns within specified legal frameworks and especially paying the correct amount of tax is a major building block within the foundation for that.
Tax Planning
The Group recognises its responsibility to pay the correct amount of UK Tax. This is balanced against ensuring the commercial success of the business, and we may utilise tax incentives or opportunities for obtaining tax efficiencies where these:
- Are not considered to carry significant risks to either our reputation or to damaging our relationships with HMRC
- Are aligned with the intended policy objectives of the governments which introduced the incentive, and
- Are aligned with our business or operational objectives
External advice may be sought where the complexities or uncertainties are considered a risk and to assist the Group in complying with its tax strategy.
The Group does not tolerate tax evasion, nor does it tolerate the facilitation of tax evasion by any person acting on its behalf.
Tax Compliance and working with HMRC
The Group seeks to maintain an open, honest and positive working relationship with HMRC and is committed to prompt disclosure and transparency in all tax matters with them.
The Group strives to comply with its tax filing, reporting and payment obligations in a way that balances against the commercial requirements of the business but always within the allowed time scales.
Appendix 1
Members of the Sinclair Motor Group:
- Sinclair Motor Holdings Limited
- Sinclair Garages (Newport) Limited
- Sinclair Garages (Port Talbot) limited
- Sinclair Garages Limited
- Sinclair Garages (Bridgend) Limited
- Sinclair Garages (Cardiff) Limited