Vauxhall Motors Limited and Related Companies
Vauxhall Motors Limited and related companies1, referred to as Vauxhall, operate in the automotive industry. The business activities of Vauxhall generate a substantial amount and variety of taxes. In the UK, we pay Corporate Tax, Customs Duty, Stamp Duty Land Tax, employer and other taxes. In addition, we collect and pay employee taxes and VAT. The taxes we pay and collect form a significant part of our economic contribution to the UK economy.
Vauxhall’s tax strategy reflects the business practices and ethos, as demonstrated in the arrangements described below.
Approach to risk management and governance arrangements
The team of tax specialists acting on behalf of Vauxhall have many years’ experience in UK and international direct and indirect taxation. The UK Head of Tax reports quarterly to the Board of Directors in respect of all tax matters for legal entities forming part of this Tax Strategy. Our internal processes and controls support the tax compliance and transactional tax obligations of the business providing our Boards and Senior Accounting Officers with a robust framework for calculation and payment of taxes due. Where any process weakness is identified, new processes and controls are implemented as necessary.
The Boards and Senior Accounting Officers are involved in review processes and are also engaged in approving transactional details including any tax related aspects. The tax team therefore remain accountable to the wider business, frequently exchanging updates relating to business and tax developments. Management of tax risks is a constant process. We identify, assess and manage tax risks and account for them appropriately. We aim to reduce the level of tax risk as far as is reasonably practicable by ensuring that robust and appropriate processes are in place for all activities which could have a material impact on our tax affairs.
Vauxhall is committed to complying with all applicable laws, regulations and disclosure requirements in accordance with the Group Code of Ethics. We observe both the spirit as well as the letter of the law and pay an appropriate amount of tax for our business at the right time.
Attitude to Tax planning
Vauxhall engages in tax planning that follows the spirit of UK Tax Law and has commercial substance that supports the business and reflects genuine commercial and economic activity, ensuring the appropriate amount of tax is levied and that enables it to manage its tax efficiently. We do not use contrived or abnormal tax structures that are intended for tax avoidance.
We adhere to relevant tax law and seek to minimize the risk of dispute arising from uncertain positions. External advice is sought when in-house Tax staff need assistance with interpretation of complex tax law.
Vauxhall conduct transactions with other group companies on an arm’s length basis and in accordance with current OECD principles.
Attitude to tax risk
Vauxhall’s aim is to minimise the level of risk in relation to UK taxation. We are not prepared to accept a level of risk that exposes us to reputational harm or which could adversely impact our relationship with HMRC.
Working with HMRC
We seek to build and sustain a relationship with HMRC that is constructive and based on mutual respect. We work collaboratively wherever possible with HMRC to resolve disputes and to achieve early agreement and certainty.
We also engage with the government on the development of tax laws either directly or through industry and other representative bodies as appropriate to encourage an open, constructive tax legislature framework.
Criminal Finances Act 2017
We support the government’s policy objective of tackling tax evasion and do not tolerate tax evasion or the facilitation of tax evasion. Following the introduction of the new Corporate Criminal Offence of Failure to Prevent the Facilitation of Tax Evasion legislation, Vauxhall seeks to apply appropriate procedures and controls to prevent any person acting on its behalf from facilitating tax evasion.
This tax strategy has been fully approved by the Board of Directors of Vauxhall companies and is published in accordance with Paragraph 16(2), Schedule 19, Finance Act 2016. This tax strategy is effective for the year ending 31 December 2019 and will be reviewed and approved annually. It was last approved on 2 December 2019.
Date First Published: 21/12/2017
Date Republished: 12/12/2019
1 This Tax Strategy applies to Vauxhall Motors Limited, IBC Vehicles Limited, Vauxhall Trade Parts Limited, VML 2017 Pension Trustees Limited, IBC 2017 Pension Trustees Limited, Vauxhall Defined Contribution Pension Plan Trustees Limited, Motors Properties Limited and Motors Properties (Trading) Limited.