Tax Strategy

This strategy has been published in accordance with paragraph 16(2) of Schedule 19 to the Finance Act 2016 (Qualifying UK groups: duty to publish a group tax strategy) for the year ending 31 December 2022 and the Woodland Group considers the publication of this strategy as complying with the duties of this legislation.

References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Woodland Group has legal responsibilities.

Aim

The Woodland Group is a freight forwarding and logistics business that is committed to full compliance with all statutory obligations and full disclosure to all relevant tax authorities.

Governance in relation to UK taxation and Risk Management

The Woodland Group prides itself on its corporate responsibility and the dutiful payment and administration of taxation. The Woodland Group obtains professional advice and technical support from reputable accounting firms and others as required in relation to relevant and complex tax obligations. In formulating the strategy, the Group fully considers the company’s tax and economic risks. It is fundamental to the Group and its Board, to comply with the tax laws and regulations in the United Kingdom, as well as satisfying and fulfilling global tax obligations.

The Woodland Group does not undertake aggressive tax planning, and commercial rationale is key in any transaction undertaken.  The Woodland Group always seeks clearance from HMRC where possible and reasonable.

Operations are executed by the staff in charge of tax and accounting and are supervised by key colleagues including the Group Finance Director and other relevant superiors at the Woodland Group. The staff in charge of accounting and tax affairs have the skills and experience required to perform their tasks properly. Where necessary the Woodland Group staff will engage with and obtain advice from reputable tax advisers.

Woodland Group seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its UK and global tax obligations.

The group strives to be as compliant and transparent as possible in regard to tax affairs and legislation and recognise the complexities implied in this process. The Group Finance Director regularly ensures the team has the adequate capabilities and training required to implement the Group’s tax strategy.

When working on any tax related tasks, we strive to:

• Maintain consistent dialogue between all stakeholders including those who are working directly on managing tax and any related risks.
• Educate everyone involved of the importance of tax compliance and meeting the expectations of the Woodland Group, as well as the legal obligations.

Risk Management

The Woodland Group has strict internal financial documentation which set out the established procedures for all processes such as taking on new customers, posting and paying invoices, ordering fixed assets and authorising employee expense claims.  The company has sufficiently robust control processes in place to accurately record transactions. As part of the annual external audit process, internal controls are tested in line with International Standards on Auditing.

The Woodland Group seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its UK tax obligations.

Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls in place.

Appropriate training is provided for staff who manage or process matters which have tax implications. Staff will attend technical training events as necessary. Advice is sought from external advisers where appropriate on tax planning or tax compliance matters. Any complex VAT or customs duty matters are dealt with by local specialist VAT consultants as and when required.

The Woodland Group outsources the preparation and filing of the annual corporation tax returns for the companies in the Woodland Group to a reputable firm of chartered accountants. This ensures that the Woodland Group is kept up to date as far as possible with emerging tax issues and tax legislation changes. That firm will deal with any questions or enquiries received from the Tax Authorities although the frequency of such reviews is very low.

Attitude towards tax planning and level of risk

The Woodland Group manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax at the right time. Emphasis is placed on conducting business activities appropriately and rationally in line with business objectives and the Group does not undertake any artificial transactions with the sole purpose of obtaining a tax advantage.

When entering into commercial transactions, the Group seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of UK tax legislation and where appropriate overseas tax legislation.

The level of risk which the Group accepts in relation to UK and global taxation is consistent with its overall objective of achieving certainty in the Group’s tax affairs. Tax risks associated with commercial transactions will be identified by external advisers and the Group Finance Director, and are assessed on a case-by-case basis.

The Group recognises the BEPS Action Plan (a countermeasure against Base Erosion and Profit Shifting), established by the OECD, as an important international tax framework for preventing international tax avoidance and excessive tax planning, and for ensuring tax transparency through tax information disclosure.

The Woodland Group also understands that arbitrary tax avoidance or lack of tax compliance may result not only in immediate financial risks such as tax litigation and penalties, but also poses a risk to the Group's reputation in addition to a risk of adversely affecting economic and social development or damaging relationships with the countries and regions in which the Group operates.  In cases where the tax guidance is unclear or the Group does not feel it has the necessary expert knowledge to assess the tax consequences adequately, external advice will be sought to support the Group’s decision-making process.

Relationship with Tax Authorities

The Woodland Group seeks to have a transparent relationship with HMRC and overseas Tax Authorities ensuring that relevant information in respect of developments in the Woodland Group’s business, current, future and retrospective tax risks, and interpretation of the law in relation to all relevant taxes are openly disclosed when required.

For corporation tax matters, local reputable tax advisers help to maintain the company’s good working relationship with the Tax Authorities. The Group seek to respond in good faith to any enquiries or other correspondence raised by the Tax Authorities.

Where there is any uncertainty on a significant transaction the Group will consider seeking any available pre-transaction clearances from HMRC, in order to gain proactive agreement on the tax implications, and to achieve certainty wherever possible. If a dispute on any tax manner were to arise the Group will aim to promptly resolve the matter with the Tax Authorities in a fair manner.

The above Strategy was reviewed and approved by the Board on 8^th December 2022.