Euro Garages (Jersey) Limited Group tax strategy statement
This Tax Strategy Statement sets out the management of UK taxes for Euro Garages (Jersey) Limited and its subsidiaries (“the Group”, “EG”). It is made available in accordance with Paragraph 16(2), Schedule 19 of Finance Act 2016 and is in relation to the financial year ending 31 December 2023.
On 31 October 2023, the Group was acquired by a subsidiary of Asda Group Limited (“Asda”). The ultimate parent company is Bellis Topco Limited. The primary trading company in the Group is Euro Garages Limited, a wholly owned subsidiary of Euro Garages (Jersey) Limited.
**The approach of the Group to risk management and governance arrangements in relation to UK taxation**
In the period to 31 October 2023, Euro Garages Holdings Limited was ultimately responsible for the Group’s tax affairs. Management of tax was delegated to the Head of Tax, who was supported by a specialist tax team. This tax team worked with all business lines to ensure tax compliance across the board, making use of external advisers where there was insufficient in-house capacity or expertise, or where there were areas of uncertainty.
Following the acquisition of the Group by Asda, Asda’s risk management and governance arrangements apply.
· The Asda Group Limited Board (“the **Asda Board**”) is responsible for the management of Asda Group Limited and its subsidiaries, and reports to the board of Bellis Topco 2 Limited, the immediate subsidiary of Bellis Topco Limited (the “**Topco Board”**). The Asda Chief Financial Officer (“**CFO**”) is responsible for communicating and advising on tax affairs and risks to the Asda Board and the Topco Board.
· Day to day tax matters are delegated to the Asda Head of Tax and Treasury, who manages a professionally qualified tax team. When appropriate, external advice is sought from professional advisers, particularly for complex or uncertain matters, to support the Group’s decision making process.
· The Asda Head of Tax and Treasury provides updates to the CFO on a regular basis to ensure that there is an awareness of any risks associated with UK tax affairs.
The Group takes a zero-tolerance approach to the facilitation of tax evasion and is committed to upholding laws relevant to countering tax evasion, including the Criminal Finances Act 2017.
**Attitude towards tax planning, so far as it affects UK taxation**
All tax planning is driven by a business or commercial purpose. The Group is committed to acting with integrity and transparency on all tax matters and complying fully with UK tax law, which may involve claiming tax allowances, incentives, or exemptions, to which it is entitled under applicable laws and regulations.
**Level of risk in relation to UK taxation that the Group is prepared to accept**
Risk is assessed on a case by case basis. To assess and control tax risks, the Group is continuously improving its tax processes and controls. The business and tax department manage tax risk by continuously performing tax controls and monitoring the effectiveness of these controls on a regular basis, with support from third-party advisers where appropriate.
The Group’s objective is to comply with legal requirements in a manner which ensures the right amount of tax is paid at the right time, underpinned by an open and co-operative relationship with HMRC.
**Approach towards the Group’s dealing with HMRC**
The Group’s approach is to comply fully with UK tax law, with full disclosure, and that any areas of uncertainty are discussed with HMRC on a timely basis. This includes regular communication with the HMRC Customer Compliance Manager and specialist HMRC teams to promote a professional, collaborative working relationship which is based on principles of transparency and trust.