Agility DGS UK Tax Strategy 2024
Introduction
The principal activity of the Company is to provide logistics and program management services to governmental, commercial and Non-Government Organizations. Current services include providing relocation and removals management, collection tracking, resale and disposal of equipment, supplies and scrap and passenger transportation services. The Company offers a full portfolio of logistics services to its customers, including traditional land, ocean and airfreight forwarding, warehousing and inventory management as well as customized solutions for all segments of the supply chain.
This document specifies the tax strategy of Agility DGS UK Limited as required by Schedule 19 of the Finance Act 2016.
The tax strategy is not expected to vary significantly from year to year. However, it is reviewed and updated whenever required and approved by the Board of Agility DGS UK Limited each year.
Ultimate responsibility for the tax strategy and compliance with tax legislation rests with the Board of Agility DGS UK Limited.
The day-to-day management and implementation of taxation strategy is delegated to the Chief Financial Officer who in turn delegates it to the in-house tax expertise that sits within the finance team and external tax advisers when considered necessary.
Tax strategy
As a responsible company, Agility DGS UK Limited is committed to full compliance with tax legislation both in the UK and in the overseas jurisdictions in which it operates. The company recognizes its responsibility to contribute to those economies in which it carries out business, which includes paying the right amount of tax at the right time.
Our strategy includes achieving tax efficiency by claiming available reliefs in circumstances in which they are intended to be claimed and structuring commercial transactions in a tax efficient manner. It does not involve implementing artificial structures with the sole objective of reducing taxation.
The Board of Agility DGS UK Limited expects the company to conduct its operations based on sound ethical practices.
Tax Governance
Tax risks go hand in hand with the Company’s other commercial and financial risks. Therefore, when considering the risk associated with significant transactions or business decisions, the tax risk is assessed as a part of this process. Decisions are made with due consideration to all risk areas and not based solely around tax outcomes.
The preparation of the annual and interim Company consolidated accounts requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. These reviews include the area of taxation where uncertainty can arise.
As a global Company, we are subject to tax in numerous jurisdictions and judgement is required in determining the provision for tax payable. There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognizes provisions for tax payable based on estimates of the taxes that are likely to become due based on management’s interpretation of country specific tax law and the likelihood of settlement. Management uses the services of external tax advisers together with in-house tax expertise and historical experience when assessing tax risks.
The Company’s appetite for tax risk, other than that inherent in being a global business, is low. The Company does not tolerate tax evasion and seeks to apply appropriate procedures and controls to prevent any person acting on its behalf from facilitating tax evasion.
Management of tax risks
In carrying out our business, the Company is inherently exposed to a level of tax risk and uncertainty. These risk levels are subject to variation due to the geographical spread of operations as well as changes in laws and regulations.
The Company actively seeks to manage tax risks through:
- use of external tax advisers with local in-country expertise
- frequent monitoring of tax legislation to ensure we keep abreast of any changes and encouragement of the in-house tax function to undertake training
- seeking external advice from tax and legal support where tax outcomes are uncertain or matters are complex and would benefit from external specialist input
- reporting of tax matters to the Board on a monthly basis
- a strong culture of corporate governance with challenge from the Board on tax and other related matters
- retaining records and documents used to prepare tax returns and computations for at least the period required by the relevant tax law.
Our position on tax planning
The Company seeks to minimize all business risks, including risks arising from tax. As part of this approach, the Company undertakes sensible tax planning to minimize unnecessary tax exposures and to support the Company’s ongoing business activities.
The Company plans ahead in order to understand future exposures and to ensure the business is sustainable and adds value. Tax costs and risks are therefore considered as part of the process by which key business decisions are reached.
We do not engage in artificial transactions structured in a way with the sole objective to reduce tax. We do seek to utilize available reliefs and incentives to reduce tax charges in the way the reliefs are intended to be used.
Our relationship with HM Revenue & Customs in the UK
The Company maintains an open and collaborative relationship with HMRC in the UK and we work together with our tax advisors and tax authority to resolve any UK tax issues. The Company is currently designated a ‘low risk’ taxpayer by HMRC and it is our objective to maintain that ‘low risk’ status.
The Company also aims to maintain an open and constructive relationship with our overseas tax authorities.
Our confirmation
Our published tax strategy has been approved by the Board of Agility DGS UK Limited and satisfies Schedule 19 of the UK Finance Act 2016 in respect of the financial year ending 31st December 2024.