JTC Tax Strategy
This Tax Strategy aims to support:
- JTC’s global business operations
- Compliance with the applicable tax legislation in the countries in which we operate
This strategy applies to all:
- Taxes (both direct and indirect) in the countries in which we operate
- Directors, employees and third parties (including service providers and external advisers) to the extent their actions affect JTC’s tax affairs
Approach to Working with Tax Authorities
JTC is committed to maintaining a good working relationship with tax authorities based upon compliance, transparency, co-operation and proactive engagement to minimise tax risk.
If disputes arise, we aim to resolve them in a timely and constructive manner.
Where appropriate, we participate in consultations on tax law changes. The form of such engagement varies and includes direct responses to public consultations and participation in working groups and committees formed by tax authorities or industry representative bodies.
Tax Compliance
JTC is committed to complying with the tax legislation and reporting requirements in the countries in which we operate.
In doing so, we…
Tax Planning
JTC focuses on ensuring that commercial transactions (e.g. acquisitions) which arise as part of our business strategy are done so in a tax efficient manner. Specifically, we do not engage in tax-motivated transactions or put in place arrangements that are artificial or contrived.
We discuss tax planning with external advisers to the extent that such planning is aligned with our strategy.
However, the primary reason that we seek external advice is to support our commercial decision-making process where the tax position may be unclear or we do not have the in-house expert knowledge to be able to fully assess the tax consequences. Our business model and market is such that we may acquire businesses in countries with low tax rates.
When making acquisitions (or disposals), consideration of the tax consequences is a key component of our evaluation process, alongside the appropriate legal and financing structuring.
Risk Management
JTC’s key tax risks occur in the following areas:
The application of tax laws to specific transactions
Our tax accounting arrangements (including the recording of transactions) and processes for making tax payments, filing tax returns and responding to questions from tax authorities
Arising from routine, business as usual operations
The process whereby we compute the tax balances included in our Annual Report and Accounts
We do not define acceptable levels of tax risk, preferring to operate on a low tax risk basis and not engaging in transactions that are considered to be high risk. When considering tax risk, we take into account our corporate and social responsibilities as well as the impact on our relationships with tax authorities and our reputation.
Group wide risks are managed centrally. Our operating structure is such that operational tax risks are managed by our local operating companies supported by the Jersey Head Office.
We hold regular meetings with our tax advisers to ensure that we are aware of legislative changes. Advisers will also be consulted in relation to non-routine transactions where we do not have the expertise in-house.
JTC has a zero-tolerance policy on tax evasion and any conduct or activities that facilitate such evasion.
Governance
JTC’s Chief Financial Officer is ultimately responsible for this strategy. The strategy is overseen by the JTC plc Board which receives regular updates, either directly or through the Audit Committee from the Chief Financial Officer.
Day to day delivery of the strategy is the responsibility of the Head of Group Tax, supported by the Group Finance Team, which together support our global business operations in their tax affairs and work closely with external advisers.
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