YTL Corporation Berhad (herein after referred to as “YTL”) operates in the UK through several UK legal entities primarily across the Water and Hotel sectors. As a result of the Group’s operational structures and the different divisions involved, not all UK entities are held by a single UK Holding company. Having said this, each company adopts the same philosophy and ensures that all its activities are of the highest legal and ethical standards.
This Tax Strategy for the year ended 30 June 2024 is provided in compliance with the requirements of paragraphs 16(2) and 19(2), Schedule 19 Finance Act 2016 and covers all YTL entities resident in the UK as listed in the Group’s annual accounts, referred to as the “UK Group” in this policy.
YTL’s attitude towards UK tax planning
The UK Group’s approach to tax is fully aligned with YTL’s overall objectives. The UK Group seeks to comply with the spirit and letter of UK tax legislation and claims all tax reliefs and allowances it is entitled to. The UK Group will consider reasonable tax planning opportunities which are in line with its risk appetite. As a general rule, the UK Group does not enter into complicated structures nor engages in any aggressive or artificial tax planning, as the UK Group does not believe it is the correct thing to do.
Due to the size and complexity of the UK tax system, tax is a complicated area and uncertainties will arise. Consistent with other business areas, the UK Group will seek external advice when required.
Approach to risk management and governance arrangements in relation to UK tax
The Finance Director/Chief Finance Officer for each member of the UK Group is ultimately responsible for the tax strategy and engages with relevant individuals across the UK Group to ensure the tax strategy is implemented and monitored. Board oversight over each member of the UK Group’s tax policy is exercised by the Board and the Audit and Risk Committee where one exists.
Due to the nature of the sectors YTL operates in the UK, the UK Group incurs significant capital expenditure. Consequently, obtaining tax relief on capital expenditure is a key factor affecting the UK Group. Other factors such as changes in tax legislation or changes in interpretations may also impact the amount of tax due by members of the UK Group.
The level of risk in relation to UK tax YTL is prepared to accept
The UK Group adopts a risk averse and cautious approach to tax. In addition, tax is included as part of the UK Group’s risk assessment framework. The overall risk framework is monitored by members of the UK Group with regular updates provided to the relevant Board.
YTL’s approach towards its dealing with HMRC
The UK Group has an open, regular and professional dialogue with all departments across HMRC. As part of its Large Business Directorate, HMRC has carried out a risk assessment for most members of the UK Group. The outcome of these risk reviews has always resulted in those entities being treated as low risk by HMRC. The UK Group is committed to maintain this low risk status in the long term.
Members of the UK Group outside of the HMRC large Business directorate have the same objective. All members of the UK Group believe that its approach to tax and early engagement with HMRC on any area of uncertainty are significant factors in maintaining this low risk rating.
Relevant members of the UK Group will also engage with HMRC on industry wide matters through its membership of industry bodies such as Water UK.