FOR HANKYU TRAVEL INTERNATIONAL EUROPE UK LTD.
FINANCIAL YEAR ENDING 31 DECEMBER 2020
Hankyu Travel International Europe UK Ltd, a limited company registered in England and Wales, is wholly owned by Hankyu Travel International Europe SRL, an Italian company and is ultimately owned by Hankyu Hashin Holdings Inc, a company which is incorporated and tax resident in Japan, headquartered in Osaka.
The overall group is a large conglomerate, its core activities include rail services, infrastructure services and retail. Hankyu Travel International Co., Ltd provides travel packages to UK/EU travel agents and EU travel packages to the parent company.
This strategy applies to Hankyu Travel International Europe UK Ltd., and it is regarded that this publication complies with the duty under paragraphs 16 and 19 of Schedule 19 to the Finance Act 2016. In this report, references to “the Company” are to Hankyu Travel International Europe UK Ltd., the UK entity.
The Company’s tax strategy and policy comprises four key components:
1. Compliance and governance
The group is committed to compliance with tax law and practice in the UK. It complies with all statutory obligations and discloses all relevant facts and circumstances to the tax authorities.
The ultimate responsibility for the Company’s UK tax strategy and compliance rests with the Board of Hankyu Travel International Europe UK Ltd. The executive management of the Company is delegated by the Board to the Managing Director of Hankyu Travel International Europe UK Ltd. The Board’s responsibility to monitor the integrity of the Company’s financial reporting system, internal controls and risk management framework, expressly includes those elements relating to taxation.
Day-to-day management of the Company’s UK tax affairs is delegated to the administration team of Hankyu Travel International Europe UK Ltd. The administration team is supported by internal and external individuals who are appropriately qualified. The administration team and the Managing Director of the Company report to the Chief Financial Officer of Hankyu Travel International Europe UK Ltd. For complex issues, advice is sought from external advisers.
2. Managing tax risk
The Company actively seeks to identify, evaluate, monitor and manage risks in relation to the interpretation of complex aspects of tax law and compliance arrangements to ensure it remains in line with the group objectives.
As a component of the overall internal control framework applicable to the Company’s financial reporting system, the Company operates a system of tax risk assessment and control. It seeks to reduce the level of tax risk arising from the Company’s operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations.
Key risks are monitored for business and legislative changes which may impact and changes to processes or controls are made when required. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought.
In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.
3. Attitude towards tax planning and level of risk
The Company’s attitude towards tax planning is consistent with the group’s global code of business conduct “Corporate Governance” set out in the website link https://www.hankyu-hanshin.co.jp/en/corporate/governance.html.
When entering into commercial transactions, the Company seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation. Amongst other factors, the tax laws of the countries in which the Company operates are considered, with a view to maximising value on a sustainable basis for the ultimate shareholders and employees.
Any structuring that is and will be undertaken has commercial and economic substance with full regard to the potential impact on the group’s reputation and broader goals. The Company will not put in place any arrangements that are contrived or artificial.
The level of risk which the Board accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs. At all times the Company seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen.
4. Working with HM Revenue & Customs
The Company engages with HM Revenue & Customs (“HMRC”) with honesty, integrity, respect and fairness and in a spirit of co-operative compliance. In communications with HMRC all relevant facts are disclosed and any transactions or issues with potential for the tax treatment to be uncertain are disclosed, when submitting tax computations and returns to HMRC. Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.