UK Tax Strategy – December 2017
Our UK tax strategy (the ‘Strategy’) applies to Tchibo Coffee Service UK Group. Tchibo Coffee UK Group refers to all UK subsidiaries of Tchibo Coffee Service Gmbh. Tchibo Coffee Service UK Group supply roast coffee, instant coffee, juice, tea, Espresso Warehouse products and brewing equipment, primarily to the commercial sector.
This Strategy applies to all taxes relevant to the UK Business and takes effect from the date of publication until superseded or otherwise replaced. This Strategy is published in accordance with section 161 and paragraph 19(4) of Schedule 19 of Finance Act 2016.
As outlined in our Sustainability Report, The Tchibo family business is based on the concept of the ‘honourable merchant’: we think long-term and see it as an entrepreneurial duty to take responsibility for our actions. As a family-owned company, Tchibo places a high priority on values-driven corporate governance, which forms the basis for sustainable growth. At our company, corporate governance is synonymous with conscientious, trans-parent management and supervision with a view to long-term value creation. This includes fair trade, uncom-promising compliance with the law, monitoring and control of potential risks, and a conscientious handling of information entrusted to us by staff and customers.
In developing the Tax Strategy, the UK Finance team have aimed to align to these corporate and social responsibility principles specifically ensuring our approach to tax is aligned to our commitment to acting ethically and with integrity in all our business relationships.
Tax Management and Governance
Responsibility for the group’s approach to tax and the management of tax risk sits with Group Tax (based in Germany). The day-to-day management of tax compliance of the Tchibo Coffee Service UK Group entities sits with the respective UK Financial Controllers and supported by local finance teams, who collaborate with Group Tax and escalate any tax-risk matters as appropriate. Ultimate accountability for tax risk lies with the Board. Board meetings are held on a regular basis. Tax is included on the agenda as necessary.
Tchibo Coffee Service UK Group have developed systems, controls, policies, procedures and training to manage tax risk. Specifically, in relation to UK tax, the risks inherent in the calculation, collection and payment of employment taxes, excise duty, VAT and corporation tax are mitigated by these.
Tax Compliance and Reporting
We are committed to observing all applicable laws, rules and regulations in meeting our tax compliance and reporting responsibilities everywhere we operate. In this regard, we have implemented effective tax compliance procedures.
We seek support and guidance from professional external tax advisors on significant tax areas and aspects of tax legislation, as appropriate.
Attitude to Tax Planning
We have a low risk attitude to tax planning and this means that all tax decisions are made in response to commercial activity, and tax is one of many factors that are taken into account when making business decisions.
We apply diligent professional care and judgement to ensure all decisions are well-considered and documented. External advice is sought in relation to areas of complexity or uncertainty to support the Group in complying with its tax strategy.
Tchibo Coffee Service UK Group is part of the wider Tchibo Group. Tchibo Group’s guiding tax principles are to comply with tax laws, to ensure transparent tax disclosures and to safeguard Tchibo’s reputation.
Interaction with HMRC
We maintain an open and transparent relationship with HM Revenue & Customs (HMRC) in how we manage tax compliance risk across all relevant taxes and duties. We discuss any key developments and events in our business and the potential impacts of those developments with HMRC in a timely manner. We disclose and seek to resolve any known issues prior to the filing of the tax return and we seek to maintain proactive cooperation with tax authorities in the event of HMRC tax investigations.