The UK tax strategy for the year ended 31 December 2023 was approved by the Board of Oriflame Partners Ltd on 27 September 2023 and applies to all Oriflame UK entities and UK permanent establishments until it is superseded and Publication of this UK tax strategy is regarded as satisfying the statutory obligation under paragraph 16(2) Schedule 19 of the UK Finance Act 2016.
References to 'UK Taxation' are to the taxes and duties set out in paragraph 15(1), of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax and Stamp Duty Land Tax. References to 'tax', 'taxes' or 'taxation' are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which Oriflame has legal responsibilities.
Oriflame's mission is helping people to fulfil their dreams. We do this by offering beauty and business to people around the world. In line with our mission, we recognize that our approach to tax should balance the needs of all our stakeholders, including shareholders, regulators, tax authorities and our customers. Therefore, Oriflame's tax strategy is aligned with our strategic goals and the needs of our stakeholders to support the business while complying with tax law and regulations and mitigating tax risks in the jurisdictions in which we operate.
Tax Risk Management and Governance
Oriflame manages identified and accepted tax risks in a similar way to other areas of operational and business risks. Tax risk is assessed and monitored by qualified tax professionals. Oriflame employs experienced tax professionals, who work closely with other departments amongst others with Finance, Legal and HR teams. In order to be compliant, we seek advice and guidance from various reputable professional firms when appropriate. We also maintain communication and hold periodic meetings with external advisors to continue to remain compliant considering changes in tax laws and regulations. Our internal tax governance structure is to have local country finance teams report quarterly or ad hoc if needed to the Global Tax Team led by the Vice President Corporate Finance who reports to Oriflame's Chief Financial Officer. Financial internal controls including tax controls are updated periodically to mitigate risk. The Vice President Corporate Finance and CFO communicate tax compliance, risk and related matters to the Audit Committee of Oriflame's Board of Directors as well as our independent auditors.
Tax Planning
Oriflame's tax arrangements are based on its commercial business activities. In structuring our business activities, we consider tax law and transfer pricing guidelines. Where our subsidiaries transact with each other, such transactions are undertaken on an arm's length basis in compliance with relevant legislation as well as international guidance and best practice, such as those set out by the Organisation for Economic Co-operation and Development. We engage in tax planning with the aim of delivering value to our stakeholders only if it is consistent with the Group's conduct and ethics standards and is in furtherance of the commercial objectives and should respect the spirit as well as the letter of the law. When entering into commercial transactions, Oriflame seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation.
Relationship with HM Revenue & Customs (HMRC)
Oriflame is committed to the principles of openness and transparency with tax authorities. Oriflame is committed to accurate and timely compliance with the UK tax laws. Oriflame aims to maintain professional relationships with the UK tax authorities based on mutual respect and trust. Oriflame will seek rulings or agreement from the UK tax authorities to achieve certainty of tax outcome where appropriate. Where this is not possible and/or appropriate we will amongst others rely on external professional advice from reputable advisors. Should an issue arise, Oriflame will work collaboratively with the UK tax authorities to minimize the extent of any dispute and achieve an early resolution to a tax issue. Whilst we aim to resolve disputes in a constructive manner by working with the UK tax authorities, we will defend positions that we believe are in line with the spirit and letter of the law.