Scope
DFS UK is a private company limited by shares incorporated in the UK under the Companies Act 2006 and is registered in England. DFS UK is a direct wholly owned subsidiary of DFS US.
This strategy applies to DFS UK in accordance with Section 161 of and Schedule 19 to the Finance Act 2016.
DFS UK is committed to:
- Following all applicable tax laws and regulations relating to its activities.
- Maintaining an open and honest relationship with the tax authorities based on collaboration and integrity.
- Applying diligence and care in managing the processes and procedures by which all tax related activities are undertaken
- Paying the right amount of tax owed, using reliefs available under applicable legislation to manage the tax cost of conducting its business while ensuring adherence to the letter and spirit of UK tax law.
Risk management and governance arrangements.
The management and governance of DFS UK's tax affairs is based on a robust control framework, overseen by DFS UK's board of directors and the global tax leadership of DFS US, in partnership with outside consultants in the UK to support DFS UK in ensuring that it applies UK tax law correctly and in alignment with its business strategy. In this way, DFS UK seeks appropriate guidance and advice for the implementation of its business decisions and tax compliance matters.
Tax Planning
DFS UK’s tax planning aims to support the commercial needs of the business by ensuring that the company’s affairs are carried out in a tax efficient manner whilst remaining compliant with all relevant tax laws. DFS UK's tax planning strategy is aligned with its overall business strategy and broader corporate governance requirements so that appropriate consideration is given to the commercial purpose and economic substance of its activities. The tax planning strategy and policies of DFS UK are reviewed on an on-going basis by DFS US and DFS UK's board of directors, with the help of outside consultants where appropriate, as part of broader commercial decision making processes to ensure that the business strategy of DFS UK is conducted with a clear understanding of the tax consequences of any decisions made.
All intercompany transactions between DFS UK and other DFS entities in other countries are conducted on an arm’s-length basis and in accordance with the current OECD principles.
Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities in order to support investment, employment and economic development. Where they exist, DFS UK seeks to apply them in the manner intended.
Attitude towards risk
DFS UK sees compliance with the letter and spirit of applicable tax legislation as a key to managing its tax risk. DFS UK understands the importance of tax in the wider context of business decisions and has controls in place to ensure that its tax affairs are considered as part of the broader commercial decision making process. DFS UK has relationships with professional advisers that allow DFS UK to receive expert advice on areas of tax to ensure compliance with and understanding of its responsibilities with regards to tax.
DFS UK is conscious of reputational considerations, and sees strong internal processes, an open and honest relationship with tax authorities and robust technical and tax compliance support from its professional advisers as the best way to manage tax and reputational risk.
Relationships with HM Revenue & Customs (HMRC)
DFS UK is committed to developing and maintaining an open and honest working relationship with HMRC. DFS UK aims to work with HMRC in a timely manner to ensure compliance with its UK tax requirements and DFS UK's professional advisers are instructed to follow this approach. In cases of technical interpretation and in order to manage tax risks, DFS UK and its professional advisers will seek to negotiate with HMRC in a pro-active and transparent manner.