Concha y Toro UK Limited - UK Tax Strategy
Introduction
We are well known for our market-leading premium wines from the Americas. Home to the world famous Casillero del Diablo, the innovative Cono Sur winery and Trivento, Argentina's top wine brand in the UK, Concha y Toro UK supply high quality, inspirational wine brands.
The purpose of this document is to set out our approach to UK taxation in respect of UK group companies. This Tax Strategy is approved by the Board of Directors and is published in accordance with paragraph 19(2) Schedule 19 Finance Act 2016 in respect of the financial year ending 31 December 2023.
The Tax Strategy is periodically reviewed, updated with significant changes approved by the Board of Directors and applies until it is superseded.
Approach to tax
Our approach to UK taxation is governed by and is in accordance with the wider Group’s (“the Group” or “CyT”) Tax Strategy, that endorses robust tax administration that includes compliance with legislative requirements and fulfilment of tax obligations across all taxes and in every jurisdiction where the group conducts business.
It is of the utmost importance that the CyT activities comply with local and foreign tax laws regarding corporate taxes, indirect taxes such as value added taxes, alcohol taxes, and any other activity that may give rise to a tax liability and/or reporting obligation. The Group is committed to maintaining fully collaborative and transparent relationships with tax authorities, including HMRC.
Tax risk management governance framework
Our approach to tax risk management supports CyT’s commitment to robust tax administration that includes accurate and timely submission of tax returns and payment of taxes. CyT’s approach to tax risk management is in line with the wider corporate governance framework that is aligned with a ‘three-line defence’ model:
- The First Line of defence encompasses corporate controls, policies, procedures and training;
- The Second Line of defence includes the function of Corporate Governance task teams, third party advisors and the wider role of financial oversight of the Group.
- The Third Line of defence consists of Internal Audit function and their independent role. Internal Audit function maintains an ongoing program of independent reviews across the business units and underlying processes.
The three lines of defence facilitates a clear understanding of risk management across the whole Group and embeds appropriate tax risk aware culture, tax risk ownership and corporate as well as personal accountability.
CyT has a process in place to ensure that tax risks are identified, assessed and mitigated. This is supported by an experienced finance team and external tax advisors. The relevant tax compliance processes, tax risks and mitigating tax controls are regularly monitored including for emerging tax risk areas. Any areas of concern identified are reviewed and escalated including to the Board of Directors.
For example, if the CyT determines that there is a specific tax risks, then typically a third-party advice would be obtained to ensure the tax risk is mitigated and full tax compliance.
The Group ensures that appropriate documentation and analysis is retained to support its tax returns. In order to ensure timely tax compliance, the Group’s Global Tax Department also oversees the compliance of all its subsidiaries including CyT UK.
CyT UK’s attitude to tax planning
The Group’s Code of Conduct requires that all decisions taken by employees must be in accordance with the Group’s values, ethical and legal.
The Group recognises the importance of robust tax administration and prioritises the reputational considerations. The business only undertakes transactions that are consistent with and support our business objectives and activities. CyT UK does not enter any artificial tax arrangements. Tax planning can include the use of statutorily available reliefs such as capital allowances and other incentives. The business complies with all relevant tax rules, regulations, and their intended spirit.
It is recognised that the UK tax legislation can be complex and of evolving nature. Therefore, external tax advisors are consulted, both to ensure a correct analysis of the transactions and understanding of the implications as well as to ensure that the arrangements are compliant with relevant UK legislation ensuring accurate and timely return submission and payment of taxes.
Acceptable level of UK tax risk
The CyT UK’s Board of Directors has a low tolerance of tax risk and adopts a conservative approach to tax. For example, if and when complex matters of uncertainty arise appropriate tax advice is sought from reputable tax advisors to ensure compliance.
CyT UK’s approach to HMRC relationships
We have an open, honest and collaborative working relationship with HMRC which includes having a constructive regular interaction. The interaction with HMRC includes submission of timely tax returns; payment of taxes; making accurate and full disclosures (including in the event errors are identified); and seeking advice where appropriate.
CyT UK is committed to maintaining open engagement with HMRC across applicable taxes and working closely to address queries (if any).