Principal Hotels Topco 1 Limited and its wholly owned subsidiaries (hereafter referred to as “The Principal Hotel Company”) present their tax strategy for the year ending 31 December 2017.
The Principal Hotel Company considers that this document meets the requirements of Finance Act 2016, Schedule 19.
This document has been approved by the Board of The Principal Hotel Company as of December 2017 and will be reviewed as necessary for future periods.
The Principal Hotel Company brings together a collection of unique properties across the length and breadth of the UK, currently with over 30 landmark properties within two divisions: ‘Principal’ and ‘De Vere’, together with our partner hotels. As a business wholly carried on in the UK, the tax profile of The Principal Hotel Company is not complex.
Approach to tax planning
The Principal Hotel Company is committed to observing all applicable laws, reporting and disclosure requirements.
Further, The Principal Hotel Company respects both the spirit and intent of tax legislation, and does not engage in any contrived or artificial tax arrangements lacking economic or commercial substance.
Level of acceptable tax risk
The Principal Hotel Company takes a conservative approach to managing tax risk, monitoring tax risks through governance procedures that are in place across the business.
Approach to risk management and governance
The Principal Hotel Company has an experienced in-house finance team who manage its day-to-day tax matters. The Board of the Principal Hotel Company oversees this team. The Board are also made aware of any complex tax risks experienced by the business.
The Principal Hotel Company seeks advice from professional tax advisers, and where appropriate seeks HM Revenue & Customs agreement, in relation to non-routine or complex matters.
The Principal Hotel Company fully supports all measures (such as the Organisation for Economic Cooperation and Development’s Base Erosion and Profit Sharing initiative) to ensure companies are appropriately transparent about the management of their tax affairs.
Such transparency makes clear to our customers, suppliers, shareholders and other stakeholders the significant contribution that The Principal Hotel Company makes to society.
Approach to dealing with tax authorities
The Principal Hotel Company recognises that by its very nature, tax can be both complex and uncertain.
The Principal Hotel Company seeks to maintain a collaborative and transparent relationship with HM Revenue & Customs.
The Principal Hotel Company will proactively work with HM Revenue & Customs to address any uncertainty.
Any queries or information requests from HM Revenue & Customs are dealt with in a timely manner, and The Principal Hotel Company will always seek to resolve any ‘open’ items as quickly as possible.