Kraft Heinz UK 2017 Tax Strategy
Kraft Heinz UK conducts business in an ethical manner, guided by the enduring principles of our founders and an unwavering commitment to integrity. Our business has a strong focus on corporate responsibility, and we see responsible administration and payment of taxation as a responsibility of our business.
Alignment with group policy
As part of a multinational group we are aligned with and follow the wider Kraft Heinz guiding principles, code of conduct and policies.
In compliance with section 161 and section 19(2) of schedule 19 Finance Act 2016, Kraft Heinz UK is publishing its tax strategy for the year ending 31 December 2017. This strategy applies to all UK subsidiaries of The Kraft Heinz Foods Company (collectively referred to as “Kraft Heinz UK”). This strategy applies to all UK taxes and duties set out in schedule 19 which include Income Tax, Corporation TAX, PAYE, NIC and VAT. References to “tax”, “taxes” or “taxation” are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Kraft Heinz UK group has legal responsibilities.
This strategy applies from the date of publication until it is suspended.
Our overall tax strategy is to:
- Meet all legal requirements and to make all appropriate tax returns and tax payments, in accordance with UK law.
- Seek to utilize available tax reliefs and incentives where available in a manner which is consistent with the government’s policy objectives.
- Consider the tax impact of major or complex business decisions, for example acquisitions.
- Operate in an environment where we consider tax in the context of our reputation and brands.
- Comply with appropriate tax risk processes, and ensure there is Board oversight into this compliance.
Tax Compliance and Governance
We want our tax affairs to be compliant with tax legislation, and recognize that managing tax compliance is increasingly complex. Our internal structure is set up to ensure:
- The Board of directors understand the importance of tax compliance and how it is achieved.
- There is a regular dialogue between the Board and those individuals tasked with the management of the finance and tax functions, regarding the way our business manages its tax risk.
- The business portrays a positive view towards compliance and the importance of meeting our obligations.
Responsible attitude to arranging our tax affairs
In structuring our commercial activities we consider, among other factors, the tax laws of the countries in which we operate, with a view to maximizing value on a sustainable basis for our shareholders. Any structuring that is undertaken will have commercial and economic substance and will have full regard to the potential impact on our reputation and broader goals.
Effective risk management
Given the scale of our business and volume of tax obligations, risks will inevitably arise from time to time in relation to the interpretation of complex tax law and the nature of our compliance arrangements.
We actively seek to identify, evaluate, monitor and manage these risks to ensure they remain in line with our objectives. As part of this monitoring process, Kraft Heinz UK maintains tax accounting arrangements which are robust and accurate and enable the business to fulfil its responsibilities under the Senior Accounting Officer (SAO) provisions in the UK. Where there are significant uncertainties or complexities in relation to a risk, external advice is obtained.
Constructive approach to engaging with HM Revenue & Customs (HMRC)
It is our policy to be transparent and proactive in all interactions with HMRC through regular meetings and communications with HMRC.
We have an open, honest and positive working relationship with HMRC. We are committed to prompt disclosure and transparency in all tax matters with HMRC. We recognize that there will be areas of differing interpretations between ourselves and HMRC and where this occurs we will engage in proactive discussions to bring matters to as rapid a conclusion as possible.
Any inadvertent errors in submission of tax returns and tax computations to HMRC are fully disclosed as soon as reasonably practicable after they have been identified.