Statement pursuant to the United Kingdom Finance Act 2016 schedules 19
This statement is prepared in accordance with the requirements of the United Kingdom Finance Act 2016, Paragraph 22(2) of Schedule 19 in relation to the financial year ended 31 December 2017.
This statement is applicable to the tax strategy in the United Kingdom for Piaggio Limited (“the Company”) which is a subsidiary of Piaggio & C S.p.A (“the Group”), a company listed on the Borsa Stock Exchange in Italy. The principal activities of the Company comprise the promoting of sales and developing of business and commercial opportunities for the Group in the United Kingdom.
Approach to risk management and governance arrangements in relation to UK taxation
The Company embraces the Group’s broader approach to corporate governance and risk management in structuring its approach to UK tax compliance and governance.
The Group has a clear governance structure within which the Group’s Business Ethics Committee sets rules and organisation strategies that seek to enable the business to adopt best practice for Corporate Social Responsibility (“CSR”). The Group publishes annual reports on its CSR and Governance performance.
The Company’s approach to tax strategy is fully aligned with the Group’s overall governance structure and code of conduct.
The Company is committed to full compliance with all statutory requirements and obligations and the Company’s AFC (Administration, Finance & Controlling) Manager is responsible for ensuring compliance with all such obligations. The Company AFC Manager uses external advisers to support its UK tax compliance filing requirements and is also supported by the Group’s tax department where necessary.
The Company has a low tolerance to risk in relation to UK taxation which is consistent with its UK business activities and the Group’s code of conduct.
Attitude to Tax Planning
The scale and nature of UK business activities are such that there is minimal complexity connected with its operations.
The Company claims the available UK tax reliefs in meeting its UK compliance obligations and it always operates within the letter and intent of the UK tax legislation.
Should any clarification be required relating to UK tax matters, the Company will seek advice to Piaggio & C. S.p.A as well as external consultants in order to ensure that any decisions it makes fully comply with the UK tax law.
Approach to Working with HMRC
The Company is not part of the Large Business regime with HMRC and thus does not have a dedicated HMRC Customer Relationship Manager but is cooperative and transparent when it is engaging with HMRC in connection with the Company’s UK tax affairs.