At Nice-Pak International it is central to our values to conduct ourselves in an honest and ethical manner at all times. In living up to our policies and values we expect to pay taxes in accordance with the law and will not seek to reduce tax costs through any type of artificial or aggressive planning.

This tax document sets out Nice-Pak International Limited and Subsidiaries’ (the Group) tax strategy. The strategy is set by the Finance Director and is reviewed and approved annually by the Board.

In setting the Group strategy the following factors have been considered in accordance with the Finance Act 2016:

• The approach to risk management and governance arrangements in relation to taxation
• The attitude towards tax planning
• The level of risk in relation to taxation that the Group is prepared to accept
• The approach towards its dealing with tax authorities

Nice-Pak International considers that the above items are satisfactorily addressed in respect of the year ending 31 December 2023.

Risk management and governance arrangements

The tax affairs of the Group are complex and include many departments of the business. There are inevitably risks of error within internal processes (Tax Risks).   Eliminating tax risk entirely is impossible, therefore the Group has ensured that controls and systems have been designed to minimise these Tax Risks.

Tax Risks are reviewed on a case by case basis, allowing the Group to decide on how each individual Risk needs to be managed.  Where there is an uncertainty as to how relevant tax law should be applied, external professional advice is sought.

All tax policies and day to day tax matters are delegated to a team of in house professionals. The Finance Team aims to be involved at all stages of material and/or tax sensitive transactions to ensure that all decisions are made with knowledge of future associated tax costs. Commercial objectives will under no circumstances override compliance with tax laws.

Tax planning

Nice-Pak International aims to ensure that we pay the correct amount of tax at the right time to HMRC and other tax authorities. We will however minimise Group tax liabilities by utilising appropriate legislative concessions and reliefs that are available to the business.

Whilst using incentives and reliefs to minimise the tax burden, the Group ensures that these reliefs are only used for purposes which we believe are clearly intended by the legislation and are fully supported by the underlying commercial activity. We will not enter into any transactions that might appear to be contrived in order to benefit from an incentive or relief.

The tax function is involved in the commercial decision making processes and provides appropriate input into business proposals to ensure a clear understanding of the tax consequences of any decisions made.

Where tax guidance is unclear or the Group feels that it does not have the necessary expert knowledge to assess the tax consequences sufficiently, external advice is sought to support the Group’s decision making process.

Level of risk in relation to taxation that the Group is prepared to accept

 We seek to always take a low risk approach to Tax governance and planning by ensuring that we comply with all tax rules, seeking advice where necessary and ensuring returns and payments are made on time. Tax accounting arrangements will be maintained that are robust and accurate and all filings will be supported by suitable documentary evidence.

The Finance Team works to limit tax risks and to proactively identify and correct any transactions that might lead to uncertainty. At no time will we enter into arrangements which reduce tax liabilities that may appear contrived or aggressive

We aim to achieve and maintain a low UK tax risk rating under HMRC’s Business Risk Review Process.

Approach towards dealings with tax authorities

The Group is committed to the principles of openness and transparency in its approach to dealing with HMRC and all other tax authorities. It values having good relations with all the tax authorities it communicates with.

The Group commits to:

• Making fair, accurate and timely disclosure in correspondence and returns, and responding to queries and information requests in a timely fashion
• Seeking to resolve issues with any tax authority in a timely manner, and where disagreements arise to work with authority to resolve issues by agreement where possible.
• Be open and transparent about decision-making, governance and tax planning.
• Interpret the relevant laws in a reasonable way, and ensure transactions are structured consistently.
• Ensure all interactions with tax authorities are conducted in an open, collaborative and professional manner.