Awaze UK Tax Strategy

Published: 18 December 2020

Introduction

This tax strategy covers all UK subsidiaries of PE Compass Holdings II Limited for the year ended 31st December 2020. It is compliant with the requirements of Paragraph 16(2) Schedule 19 of the Finance Act 2016, and was approved by the Operating Council of the Group in November 2020.

This tax strategy applies from the date of publication, and will be reviewed and updated annually.

About us

The Awaze Group is the largest managed vacation rental and holiday resort business in Europe which brings together some of the continent’s most trusted travel brands, including cottages.com, Hoseasons, James Villa Holidays, Landal GreenParks and Novasol. Our market-leading brands offer hundreds of years of combined travel industry experience, as well as an incredible range of properties in some of the world’s most popular destinations.

The Group appreciates that collecting and paying UK tax represents an important contribution to the economy and society of the United Kingdom, and is therefore committed to complying with UK taxation laws and regulations. We aim to pay the right amount of tax, at the right time, and have an open and constructive relationship with HM Revenue and Customs (HRMC).

Governance

The Operating Council of the Group approves the tax strategy of the Group. The Group Audit Committee is regularly updated on tax matters, and monitors the Group’s tax affairs and risks. The Group recognises that tax situations can be very complex, and therefore ensures that it takes independent external advice to ensure that tax risk management decisions are based on the latest and most relevant interpretation of laws and regulations.

The Group’s Chief Financial Officer (CFO) is responsible for establishing, and sustaining appropriate policies, processes and systems, and for ensuring that the Finance Teams have the required skills and support to implement that Tax Strategy. The Group’s Tax Director assisted by external advisors, is responsible for ensuring the day-to-day operation of the tax risk policies, and the management of tax affairs in the UK. The day-to-day compliance with all tax requirements is the responsibility of the Finance Teams.

Attitude towards tax planning

The Group’s UK tax planning aims to support the commercial needs of the business by ensuring that the Group’s affairs are carried out in the most tax efficient manner whilst remaining compliant with all relevant laws and regulations.

We do not engage in artificial or aggressive UK tax planning arrangements, for the purpose of tax avoidance.

The Group seeks to minimise the risk of disputes or uncertainties with tax authorities, and undertakes transactions with Group companies on an arm’s-length basis and in accordance with the OECD guidelines on transfer pricing.

Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities to support investment, employment and economic development, and these will be applied by the Group, when available and in the manner intended.

Level of tax risk

The Group proactively seeks to identify, evaluate, manage, and monitor its UK tax risks by considering the various tax streams, identifying the key tax risks, and ensuring that appropriate controls and processes are in place for these.

Where required, the Group will seek external advice to assist it with its interpretation and application of the UK tax legislation, and to support its assessment of the tax risks and outcomes.

The Group aims to ensure that the level of tax risk remains at an appropriate level. This is achieved by adhering to the following tax objectives in relation to UK taxation:

The Group has a zero tolerance approach to tax evasion and does not provide services with the aim of facilitating tax evasion.

Relationship with HMRC

The Group seeks to build and sustain relationships with tax authorities that are constructive and based on mutual respect. We engage with HMRC with honesty, integrity, respect, fairness, and in a spirit of co-operative compliance. The Group is prepared to litigate where it disagrees with a ruling or decision, but will always seek to work collaboratively with HMRC to resolve disputes and come to an agreement to achieve certainty.