Iceland – Group Tax Strategy
This document sets out the Iceland Group Tax Strategy for the period ended 26 March 2021 in accordance with the UK legislation as set out in Schedule 19 Part 2 Finance Act 2016.
The purpose of the Iceland Group Tax Strategy is to provide guidance and a framework of Iceland’s approach to tax, and is applicable to all group entities both UK and overseas.
The Board of Directors of Lannis Limited the parent of the Iceland group has ultimate oversight over tax for Iceland. The tax strategy has been reviewed and approved by the Board of Directors.
The Tax Strategy will be reviewed annually with any significant changes being considered at Board level.
The key elements of the Iceland tax strategy are summarised below:
Iceland’s global Tax Strategy is fully comply with the laws in each jurisdiction where Iceland and it’s subsidiaries operate.
The groups reputation whilst conducting its tax affairs is of paramount importance.
Iceland has a small tax team, with the Tax and Treasury Manager reporting to the Chief Financial Officer, who reports to the Chief Executive Officer (The CEO is the appointed Senior Accounting Officer “SAO”).
There is a framework of processes and controls for all taxes and all jurisdictions which is reviewed frequently. Regular update meetings are held between the Tax & Treasury Manager and the CFO, who is a member of the Board of Directors, any tax issues can be raised to the Board where appropriate.
Attitude of the group towards tax planning and risk
Management of our tax affairs is driven by our commercial drivers and strategic activities rather than artificial tax driven arrangements. As Iceland grows internationally the level of tax risk and complexity also increases although Iceland’s appetite for tax risk is low.
The Iceland tax team reviews regularly the levels of tax knowledge and awareness so that the impact of tax can be considered at the outset
of new projects and business decisions.
The tax team regularly reviews changes in tax legislation and assess the impact on all the business areas to ensure the Group operates
within the rules as they change.
Where appropriate a representative member of the tax team are assigned as project team members for new projects which need tax
consideration, and where appropriate external advice and overseas expertise sought.
Approach of group in dealing with Tax Authorities
The Group maintains an open dialogue with all tax authorities in the jurisdictions in which Iceland operate. An internal control process is
maintained to ensure all filing obligations and payments are made on a timely basis.
Dealing specifically with the relationship with the UK tax authority
H M Revenue and Customs (“HMRC”) and the Tax & Treasury Manager ensures regular updates are held to ensure real time working, keeping HMRC up to date on strategic group developments, the impact on any proposed changes in UK tax legislation and any other matters of importance to the group and HMRC.