SGN Group – Tax Strategy FY23

Introduction

SGN Limited is an independent forecourt operator in the UK with around 75 stations operating under the BP, Shell, Esso, Texaco, JET and Essar fuel brands.

Paragraphs 19(2) and 22(2), Schedule 19, Finance Act 2016 requires the Group to set out the tax strategy of its UK companies listed in Appendix 1. This strategy covers all taxes and relates to the year ending 26 March 2023.

This tax strategy document, approved on 24 August 2022 by the Board of SGN Ltd summarises the Group’s policy and approach to managing its tax affairs and how it deals with tax risks. It was published on 1 December 2022 and will be reviewed annually by the Board and is made freely available to the public.

SGN’s Tax Mission Statement

The SGN Group aims to:

• observe at all times relevant tax laws, rules, regulations, reporting and disclosure requirements
• ensure that the Tax Strategy and Code of Conduct is aligned with the Group’s business and commercial strategy
• develop and foster proactive and transparent working relationships with all tax authorities and government bodies to minimise the extent of disputes, to achieve early agreement on disputed issues when they arise, and achieve certainty, wherever possible
• when considering tax, ensure due consideration is given to the Group’s overall strategy relating to corporate governance and internal risk management
• act with integrity and transparency at all times and to be trusted by all our customers, suppliers and other key stakeholders.

Key roles and responsibilities

The Finance Director (FD), who is a member of the Board, is ultimately responsible for the Group’s Tax Strategy and Code of Conduct and is also the Senior Accounting Officer.

The finance team is responsible for managing the Group’s tax compliance obligations. Day to day tax responsibilities fall to the Financial Controller who reports to the FD. Both members in the tax reporting line hold recognised accounting qualifications.

SGN use reputable external tax advisors to provide tax technical expertise and additional resource based on an assessment of risk and requirements, such as:

• Advice on technical matters and uncertainties
• Advice on the tax impact of any significant changes to the business
• Assistance with tax filings including any relevant claims for tax incentives

Relationship with Her Majesty’s Revenue & Customs (HMRC)

SGN’s management of relationships with tax authorities is consistent and is defined as follows:

• SGN aims to be open and transparent with tax authorities
• SGN aims to ensure compliance with all relevant legal disclosure requirements
• SGN aim to maintain a strong and pro-active relationship with tax authorities
• SGN will disclose any material errors identified in tax filings to HMRC in a timely manner

The Group’s tax risk profile

Despite the size and nature of the business, the Group run have a relatively simple business model, and therefore consider the tax risk profile to be low overall.

Management of UK tax risk

Managing tax risk is important for the Group and a tax risk and controls matrix is maintained. The output provides a comparison of the tax risk and control environment across the Group and enables the Group to prioritise and remediate controls gaps quickly and effectively.

Tax risks are highlighted to the FD and the wider finance team and discussed at Director and Board level.

Tax planning

The Group will not enter into transactions designed principally to give a tax advantage. Any tax reliefs and exemptions are claimed based on advice from external tax advisors and in accordance with the spirit of the tax legislation and HMRC guidance where relevant.

Appendix 1 – SGN Group – UK tax registered companies

• SGN Limited
• T G Convenience Stores Limited
• Global Fuel (UK) Limited
• Starbridge Property Investment Limited
• Roundswell Services Limited