UK Tax Strategy

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UK Tax Strategy

We aim to fully comply with all tax laws. We are in regular contact with the tax authorities and we strive to have an open and constructive relationship with them.

 

UK Group

The Antalis UK Group is part of the Antalis division of the Sequana SA Group. Sequana SA, which is quoted on the Paris Bourse, has two main operating divisions; Antalis a distributor of paper, packaging and visual communication solutions and ArjoWiggins a paper manufacturing operation.

The Antalis division of Sequana has sales of €2.5bn and has 5,600 employees in 43 countries across the world. Its main activity is the distribution of paper and paper products but packaging and visual communications are also significant activities.

The Antalis UK group comprises the following companies:

Antalis Limited

A distributor of paper, packaging and visual communication solutions. Its head office is in Coalville, Leicestershire and it has numerous distribution centres across the UK. In 2016 its turnover was £497m and it had 1,114 employees.

 

 

Other holding / non-trading companies

Antalis Group Holdings Limited, Antalis Group, Antalis Holdings Limited, Antalis Overseas Holdings Limited, Map Merchant Group Limited, James McNaughton Group Limited, 1st Class Packaging Limited, Donington Packaging Supplies Limited and Parkside Packaging Limited.

 

Taxes paid and collected by the UK Group

We pay stamp duties, employment and other taxes. We do not currently pay corporate income taxes due to the availability of commercially generated tax losses and allowances in the Sequana UK group. In addition the group collects and pays over both employee taxes and VAT.

 

Our approach to tax

We aim to fully comply with all tax laws. We are in regular contact with the tax authorities and we strive to have an open and constructive relationship with them.

This approach is underpinned by the Sequana Group Code of Business Conduct. This code requires, inter alia, all directors, officers and employees of the group to “Strictly abide by all applicable laws and regulations” and to “Build and maintain clear, fair, honest and lawful relationships with business partners [which include governments and government agencies]”.

The overarching approach is applied to particular matters as follows:

Tax risk management and governance arrangements

The tax risk management system is part of our internal control processes. We identify, assess and manage tax risks and account for them appropriately. We implement risk management measures including controls over compliance processes and monitor their effectiveness.

Diligent professional care and judgement are employed to assess tax risks to arrive at well-reasoned conclusions on how the risks should be managed. Where there is uncertainty as to the application or interpretation of tax law, appropriate written advice evidencing the facts, risks and conclusions may be taken from third party advisers to support the decision-making process.

Tax risk management also includes internal audit reviews of tax compliance activity across the Group.

The head of group tax of Sequana SA is responsible for the tax strategy of the Sequana group globally and ensures that there are policies and procedures in place to support our approach. The group head of tax reports directly to the main group board and the group tax strategy is monitored and approved by the group board of directors.

The Sequana group employs a UK tax manager who deals with the tax affairs of the Antalis UK group as well as its sister division ArjoWiggins in the UK. The UK tax manager, who reviews and monitors all aspects of UK taxes including corporate taxes, VAT and employment taxes, reports directly to the Sequana group head of tax and operates within the parameter set by the group head of tax.

Tax Planning

Tax planning is used to support the economic and commercial activity of the group to minimise tax liabilities within the legal framework set by the government. We do not enter into artificial tax planning schemes.

One of our prime aims when considering tax matters is to minimise the risk of uncertainty and disputes with the tax authorities. Our policy of open and constructive relationships with the tax authorities supports this aim and also, where possible, we seek to agree the tax treatment of transactions in advance.

Where tax incentives and exemptions are available we seek to apply them in the manner intended.

The Antalis UK Group does not have any subsidiary companies in tax havens. The Antalis UK Group is held directly by a Sequana SA subsidiary in France and not through any complex shareholding structure involving tax havens.

We apply OECD principles to ensure that all transactions between Sequana Group companies are conducted on an arm’s-length basis. Compliance is supported through the application of the group transfer pricing policy and the maintenance of a group transfer pricing master file.

Summary

Although this note specifically applies to the Antalis UK group it reflects the approach to tax globally by the Sequana Group.

This note was approved in December 2017 and will be reviewed annually.