FAI Automotive plc is a wholly owned subsidiary of Motus Holdings Limited, a South African listed entity.
FAI Automotive plc trades as a wholesaler of spare parts for motor cars and vans.
This strategy applies to FAI Automotive plc in accordance with paragraphs 19 of Schedule 19 to the Finance Act 2016. In this strategy, references to ‘the Company’, are to FAI Automotive plc. The strategy is being published by the Company in accordance with paragraph 16(2) of the Schedule.
This strategy applies from the date of publication until it is superseded. 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 the Group has legal responsibilities.
This strategy was approved by the Board of FAI Automotive plc on 11 October 2023. Any subsequent amendments to this strategy will be approved by the Board.
The tax strategy of the Company must preserve and enhance the value and reputation of the Company in the context of its business activities. The Company has a well-deserved reputation, earned through excellent work over many years, and it is essential that this is retained.
The Company is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The Company’s tax affairs are managed in a way which takes into account the Company’s wider corporate reputation in line with the Company’s overall high standards of governance.
• Ultimate responsibility for the Company’s tax strategy and compliance rests with the Board of directors of FAI Automotive plc.
• The Company’s Finance Director has responsibility for tax at Board level and will provide updates to the Board on the tax affairs and risks of the Company.
• The Board has delegated the responsibility for day-to-day management of the Company’s tax affairs and implementation of the Tax Strategy to the Company’s Finance Director who is supported by the Finance teams.
• The Finance teams are staffed with appropriately qualified individuals.
• The Board ensures that the Company’s tax strategy is one of the factors considered in all investments and significant business decisions taken.
• The Company operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the Company’s financial reporting system.
• The Company seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations.
• Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls in place. These key risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required.
• Appropriate training is provided for employees who manage processes or process transactions that have tax implications.
• Advice is sought from external advisers where appropriate.
The Company manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.
When entering into commercial transactions, the Company seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation. All transactions are therefore required to have a commercial rationale or business purpose.
The level of risk which the Company accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the Group’s tax affairs. At all times the Company seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Board and Company Finance Director is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.
The Company maintains an open and honest relationship in its dealing with HMRC and will seek to work in ‘partnership’ with HMRC in relation to its tax dealings. The Company seeks to obtain this through:
• Paying the right amount of tax on time;
• Submitting all tax returns on a timely basis;
• Ensuring that tax returns include sufficient detail to enable the tax authorities to form an accurate view of the affairs of the company filing the return with an adequate supporting audit trail and sign-off process;
• Maintaining tax accounting arrangements which are robust and accurate and comply with local regulations and the Senior Accounting Officer provisions in the UK; and
• Working closely with the tax authorities at all times.
In the event of any inadvertent errors arising in submissions made to HMRC, these are fully disclosed as soon as reasonably practicable after they are identified.
FAI Automotive plc