Tax Policy

TAX POLICY

As part of the Pentland Group, The Canopy Company tax function operates through the group.  We therefore follow the Pentland Group tax policy and adhere to this.  All relevant members of The Canopy Company finance function that have connection to tax through their roles are made aware of the Group tax policy.

Pentland Group plc

Pentland Group plc: Our Approach to Tax

The Group’s CFO is responsible, in his role as Senior Accounting Officer, for ensuring appropriate processes and controls are in place to deliver accurate financial information to enable compliance with UK tax laws. The Pentland Group Head of Tax maintains a Tax Risk Management Framework which identifies potential tax risk and the processes and controls in place to mitigate those risks. These are reviewed regularly with the Group CFO and Head of Internal Audit.

The Group aims to be honest and open in its dealings with tax authorities. We will never knowingly seek to gain an advantage by acting dishonestly, or fraudulently, or by making false claims.

We seek to protect the net worth of the Group and achieve appropriate tax outcomes for significant commercially motivated transactions, but will not knowingly undertake any transaction which

• relies on a lack of transparency or non-disclosure, or
• carries a significant risk of damage to our reputation or brands, or
• are not undertaken on arm’s length terms, or
• which relies on interpretations of the law which are clearly inconsistent

with the intentions of government / tax authority policy.

When managing tax risk we consider the impact on all stakeholders; not only shareholders but customers, consumers, staff and the tax authorities. We value our relationship with HMRC and other tax authorities, and our policy is to be open and honest in our dealings with them and will not act improperly.

Tax rules and their interpretation are complex. The Group has dedicated resource in corporate tax, VAT, customs & duties and employment taxes with appropriate professional qualifications and experience commensurate with their responsibilities and role. The Group also obtains advice from external providers where the required expertise is not available in-house or where the size or complexity of the transaction warrants it. We also use external firms to support us in relation to tax compliance filings. The decision whether and how to use external advisers rests with the Group Head of Tax, who ensures that such providers are aware of the principles contained in this document. We also share, where appropriate, details of proposed business changes with tax authorities in advance, either by way of formal pre-transaction clearances or more informally.

The Group does avail itself of tax reliefs or incentives where available (for example credits for research & development, and the exemption of proceeds from tax for the sale of substantial shareholdings in the UK).

Members of the Group who operate in the ‘shadow’ tax function (i.e. those who are not directly members of the tax function but who are responsible for processes and controls which impact tax filings) will be provided with appropriate training and guidance as identified by the tax function. The tax strategy is also highlighted annually to all members of the Group.