Tax policy 2019
1. Our vision for tax
- Selfridges always aims to be tax compliant and our tax policy reflects and supports our business. All taxes and charges are paid according to local laws and regulations, and as a good corporate citizen Selfridges sees tax as an important part of its social responsibility. Our vision is to be the leading luxury retailer in the UK, underpinned by responsible policies and practices that uphold our business values and therefore define and inform our behaviours. Our vision is enabled by the effective operation of our internal functions, in this case our tax function, in a way that is consistent with the vision and values. To achieve this, we focus on implementing strategic tax objectives as follows.
2. Our tax strategy objectives
2.1 Work as one to comply with all applicable statutory tax obligations
- We operate a risk averse, proactive approach to tax management through the operation of robust systems, policies and procedures. This approach is approved by the Board and considered at Board level at regular intervals.
- We identify tax risks through discussions with HMRC, external auditors, internal audit and external tax advisors, as well as internal reviews. These are formally documented as part of our Senior Accounting Officer Obligations.
- Key controls are implemented to ensure the timely collection and remittance of all forms of tax revenues including VAT, income taxes, payroll taxes and customs duties. Controls are actively monitored to ensure risk mitigation to acceptable levels, and for design and operating effectiveness.
2.2 We undertake responsible tax planning, and respect our world by contributing fairly to the economic environment in which we operate
- We are committed to the highest standards of ethical conduct and recognise our social responsibility to make a fair economic contribution and give back to the communities we operate in with respect to the law.
- We seek to be tax efficient and maximize tax reliefs as part of the ordinary course of business but will not enter into tax arrangements that lack commercial substance.
2.3 Maintain a collaborative and transparent relationship with our external stakeholders, including tax authorities
- We adopt a transparent approach to working with HMRC by maintaining regular contact. We have been awarded a low risk rating by HMRC and our objective is to maintain this.
- Where appropriate we openly seek HMRC’s agreement before proceeding, and avoid situations where a potential dispute or conflict may arise.
- We contribute to public discussions on tax and business law, such as HM Treasury tax policy consultations.
2.4 Inspire our people to innovate and create solutions to complex problems
- Ongoing communication and close collaboration are key and we encourage active links between tax personnel and the wider business. This creates more efficient access to relevant information, and increases awareness of when to involve those with responsibilities for tax on commercial transactions and projects.
Our published UK Tax Strategy satisfies Schedule 19 of Finance Act 2016, in respect of our financial year ending 2 February 2019.