This document sets out the policy and approach to dealing with tax risk and conducting tax affairs.
AOC is committed to being a responsible taxpayer, being transparent and straightforward on all tax matters. We are committed to ensuring we pay the right amount of tax in the UK when it falls due. Our tax strategy is designed to ensure that all the UK tax compliance and obligations of payment are met.
Our strategy has the following key components:
- • Tax Objective
- • Tax Policy
- • Tax Risk Management and Governance
- • Relationship with HMRC
Key tax objectives for AOC are:
1. To pay all the legally required taxes due and fully comply with all tax legislations in jurisdictions where AOC and its Subsidiaries (Group) operates
2. To safeguard the Group’s reputation as a responsible taxpayer
The Group’s approach to governance and risk helps define the key tax objectives to be achieved.
Below are number of principles for a sustainable Tax policy:
• Taxes should be calculated correctly and in accordance to the law and paid when they fall due
• Statutory tax returns should also be review for correctness, contain accurate information and filed when due
• All other tax obligations for the Group should be fully complied with at the local entity level
• Ordinary commercial transactions should be structured with clear and unambiguous legislative support, so that tax liabilities are controlled and minimised
• Tax structuring that might reasonably be expected to have a negative impact on the group’s reputation will not be considered
• Tax advice is obtained from external advisors who have the appropriate technical expertise where tax law is unclear or subject to interpretation or AOC does not have the internal expertise to assess a particular tax position
We actively seek to identify, evaluate, monitor and manage tax risks to ensure that they are consistent with our objectives. In reviewing the tax risks associated with the business operations, we consider the following:
• legal duties of directors and employees;
• compliance with internal policies and procedures; and
• impact on AOC’s relationships with tax authorities;
The Chief Financial Officer (“CFO”) is responsible for taxation, and has oversight of tax risks across the organisation and is authorised to manage the tax risks and approve tax positions, tax settlements and payments. The CFO reports relevant tax matters to the Board of Directors as appropriate.
We are committed to maintaining a cooperative and open working relationship with HMRC directly and through our Client Relationship Manager (CRM). We have an open relationship with our CRM, communicating on a regular basis through a combination of telephone calls and e-mail.
The Attock Oil Company Limited (AOC) regards the publication of the information set out above as compliant with our duty under Finance Act 2016, Schedule 19, Paragraph 19 to publish a tax strategy and effective from the year ended 30 June 2017.
