UK Tax Strategy
Introduction
The a2 Milk Company Limited, being an entity incorporated and domiciled in New Zealand and its subsidiaries (together referred to as the a2 Milk Group) is listed on the New Zealand Stock Exchange (NZX), the Australian Securities Exchange (ASX) and Chi-X Australia (Chi-X).
The a2 Milk Group is focused on the sale of branded products in targeted markets made with milk from cows that produce milk naturally containing only the A2 beta casein protein type.
The a2 Milk Group publishes this, UK Tax Strategy, on behalf of its UK incorporated subsidiary, The a2 Milk Company Limited, for the financial year end 31 December 2020 under paragraph 22(2) Schedule 19 Finance Act 2016.
We have set out below our approach to UK taxation in line with the legislative requirements:
Risk management and governance arrangements
The a2 Milk Group is committed to maintaining the highest standards of corporate governance. The corporate governance framework has been established to ensure that directors, officers and employees fulfil their functions responsibly, whilst protecting and enhancing the interests of shareholders.
Our group management and governance framework underpin the way we operate and conduct our business affairs. It is established and reflected in our policies and processes that include: Corporate Governance Statement; Board Charter; Audit and Risk Management Charter; Tax Risk Management Policy; Code of Ethics and others.
Our finance and tax affairs are managed by our finance team and supported by the regional finance teams and the a2 Milk Group tax functions in Australia. Our finance teams consist of members who are appropriately experienced and qualified for the functions that they undertake. In addition, where appropriate, they are supported by a network of external advisors.
The Board with assistance of the Audit and Risk Management Committee is responsible for the development and execution of the risk management program to ensure that business risks are identified, assessed, monitored, and managed effectively.
Attitude towards tax planning and risks
Transactions and structuring within the business are driven by commercial considerations consistent with and supporting our business objectives and activities. The business complies with all relevant tax rules, regulations, and their intended spirit.
The a2 Milk Group’s appetite for tax risk is low and will be assessed having due regard to compliance, financial, and reputational risk. Assessment of tax risk takes into account:
- The short and long term impacts of the risk;
- A balanced quantification of the net impact; and
- The a2 Milk Group’s corporate responsibility and reputation.
Significant business transactions are considered from a group perspective and reviewed regularly by the CFO and the Audit and Risk Management Committee. The evaluation of whether a tax risk is considered significant will be based on both qualitative and quantitative potential impacts.
Approach towards dealings with Her Majesty’s Revenue & Customs (HMRC)
The a2 Milk Group seeks to maintain an effective relationship with HMRC, working in a transparent and mutually constructive manner. This includes full and open engagement with HMRC in relation to the affairs of the business across all applicable taxes.
The business is committed to robust tax administration that includes appropriate disclosures, timely tax return filings and payment of taxes.
