Tax Strategy
Last updated: January 19th 2024.

Trailmix Group (“Trailmix”, “we”, “our”) is publishing our approach in regards to our tax affairs and risks for the year ending 31 December 2023, in pursuant to Section 161 and section 22(2) of Schedule 19 of the UK Finance Act 2016.We believes in our obligation to comply with tax laws and regulations in all jurisdictions we operates in, as well as to pay the amount of tax legally due in any territory, in accordance with the rules set out by governments. In certain aspects of tax law there can be ambiguity about the application of rules which can lead to differing interpretations by taxpayers and tax authorities and which result in tax disputes. Trailmix aims to prevent unnecessary tax disputes and make continuous efforts to ensure our tax treatment and interpretation of tax laws are compliant. However we recognise that, in order to achieve our key objective of enhancing shareholder and stakeholder value as well as value for our players, disputes are sometimes unavoidable.

We are committed to:

  • Following all applicable laws and regulations relating to our tax activities.
  • Maintaining an open and honest relationship with the tax authorities based on collaboration and integrity.
  • Implementing strong compliance procedures to ensure accurate and complete tax returns.
  • Applying diligence and care in our management of tax risks, and ensuring that our tax governance is appropriate.
  • Using incentives and reliefs to minimise the tax cost of conducting our business while ensuring that these reliefs are not used for purposes which are knowingly contradictory to the intent of the legislation.

Risk management

Attempting to avoid all tax risk would result in an overly prudent position which is not in line with our objective to maximise shareholder value. Trailmix therefore follows “the more likely than not” principle for making decisions on tax matters, and when considering the outcomes of different approaches to tax planning, and assess the likelihood of each occurring.

Tax risks are assessed on a case by case basis, allowing Trailmix to arrive at well-reasoned conclusions on how each individual risk should be managed. Where there is uncertainty in how the relevant tax law(s) should be applied, external advice may be sought to support our decision making process.

When reviewing the tax risks associated with a specific decision or action, we ensure that the following are considered:

  • The legal and fiduciary duties of directors and employees.
  • The requirements of any related internal policies or procedures.
  • The impact on corporate reputation, having particular regard to the way we interact with the communities around us.
  • The tax benefits and impact on the Company’s reported result compared to the potential financial costs involved, including the risk of penalties and interest.
  • The wider consequences of potential disagreement with tax authorities, and any possible impact on relationships with them.

Tax planning

We will work hand in hand with external tax advisers to mitigate tax risk. Our tax planning is driven by the commercial needs of the business, and anticipated future developments. Where alternative routes exist to achieve the same commercial results, the most tax efficient approach in compliance with all relevant laws will be followed.The commercial needs of the business will in no circumstances override compliance with all applicable laws and regulation. External tax advisers is therefore involved in decision making and provides appropriate input into business proposals to ensure a clear understanding of the tax consequences of any decisions made.

Approach towards dealings with tax authorities

Trailmix aims to develop and foster good relationships with local tax authorities, government and other related third parties and to undertake all such dealings in a professional, courteous and timely manner. We are committed to the principles of openness and transparency in our approach to dealing with all related local tax authorities, and in particular Trailmix commits to:

  • Pro-actively manage the relationship with the tax authorities with the aim of minimising the risk of challenge, dispute or damage to Trailmix’s credibility.
  • Engage in full, open and early dialogue with affected local tax authorities to discuss tax planning, strategy, risks and significant transactions.
  • Share information/request inputs as to whether subjects for consultation are in place or have been monitored in other countries.
  • Seek to resolve issues with tax authorities in real time and before returns are filed if possible, and where disagreements arise work with the tax authorities to resolve issues by agreement where possible.
  • Be open and transparent about decision-making, governance and tax planning.
  • Participate in discussions and the development of proposals with any industry-specific tax groups, regional and international organisations where possible and appropriate.
  • Interpret the relevant laws in a reasonable way, and ensure transactions are structured consistently with a co-operative relationship.

It is Trailmix’s policy to be transparent and proactive in all interactions with tax authorities. The application of this principle should be tailored to each territory style and engagement, we will therefore sought out local tax advice to fulfil our commitment.

© Trailmix Ltd.