This document sets out Thompson Aero Seating’s approach and strategy for handling its tax affairs and managing the tax risk of its UK companies. This document is intended to meet the requirement to publish a tax strategy under Schedule 19 of the UK Finance Act 2016. It is effective for the financial year ended 31 December 2020.
The tax strategy applies equally to UK and to non-UK taxes and to all forms of tax, including corporate income and indirect taxes as well as taxes associated with employees.
Thompson Aero Seating handles its tax affairs in accordance with the following objectives:
- Ensuring compliance with all relevant tax law in all jurisdictions in which the company operates.
- Supporting the business in achieving its strategic objectives, whilst managing the associated tax costs in a manner that is consistent with the company’s attitude to commercial risk.
- Ensuring that all communication with tax authorities is conducted in a professional and transparent manner.
Risk management and governance
The directors of Thompson Aero Seating Limited have the ultimate responsibility for ensuring the compliance of the company with tax law and regulations, the management of tax risks and the provision of information to our stakeholders. Responsibility for the tax strategy and the management of tax risk rests with the Chief Financial Officer. We report on a periodic basis to our board on how tax risks are managed and monitored.
We assess whether we have appropriate tax accounting arrangements to ensure the integrity of our tax returns and timely and accurate tax payments. We are committed to complying with all tax legislation applicable to our operations around the world. We ensure that the tax strategy is aligned with our overall strategy and our approach to risk management.
Thompson Aero Seating recognises that tax laws are complex and compliance may be subject to different interpretation. To assist with compliance with this:
- We invest in internationally recognised accounting systems.
- We maintain sufficient financial internal controls and processes.
- Where necessary, we seek the assistance of external experts (e.g. to calculate R&D tax credits).
- All our corporation tax returns (and equivalent returns in other countries as required) are reviewed or produced by external experts.
Our approach to tax planning
In structuring our commercial activities, we comply with the letter of the tax laws of the countries that we operate in with a view to maximising sustainable returns to shareholders. Any tax planning will have commercial and economic substance. We seek to maximise the benefits available from tax credits and other incentives offered by governments (e.g. R&D credits, intellectual property incentives) and we do not use artificial or contrived structures that seek to exploit shortcomings in tax legislation.
Dealings with tax authorities
In our approach to dealing with tax authorities (including HMRC), we aim to maintain relationships that are constructive and based on mutual respect. We cooperate fully with audits and enquiries and wherever possible work collaboratively to resolve disputes and expedite early agreement of issues and uncertainties.