UK Tax Strategy Paper FY 2021


Aramex UK Limited

Tax Strategy – FY 2021

1. Introduction

This document, approved by the Board of Aramex UK Limited (‘Aramex UK’), is published to set out Aramex UK’s policy and approach to conducting its tax affairs and dealing with the UK tax risk. The document will be periodically reviewed by Aramex UK and the Group Tax team, and any amendments will be approved by the Aramex UK Board of Directors. The company regards its publication as complying with  duty under paragraph 22(2) of Schedule 19 to Finance Act 2016 for the year ending 31 December 2021.

2. Aramex UK’s Tax Policy

Aramex UK is committed to: 

  1. Complying with all relevant laws (including the OECD arm’s length standard with respect to transfer pricing and EU Mandatory Disclosure Reporting), rules, regulations, and reporting and disclosure requirements, relating to its activities.

  2. Applying professional diligence and care in the management of the processes and procedures by which all tax related activities are undertaken and ensure tax governance and assurance procedures are appropriate.

  3. Maintaining constructive, professional and transparent relationships with tax authorities, based on integrity, collaboration and mutual trust.

  4. Using relevant incentives and reliefs provided by the government to minimise the tax cost of conducting business activities but will not use them for purposes which are knowingly contradictory to the intent of the legislation.

  5. Monitoring any updates to the UK tax legislation and/or any amendments of interpretation to the UK tax legislation

3. Aramex UK - Tax Code of Conduct

Aramex UK’s Tax Strategy is supported by the Code of Conduct (CoC) detailed below to ensure full compliance with all statutory requirements. The CoC outlines the principles and sets out the manner in which Aramex UK employees are expected to operate with respect to tax matters in support of the above Tax Policy. Non-adherence to the CoC could constitute a disciplinary matter.  

A. Compliance with laws, rules and regulations

Aramex UK is committed to observing all applicable laws, rules, regulations, and reporting and disclosure requirements, wherever there is a requirement to do so.   

Aramex UK Limited Tax Strategy  

The In-house Tax Team has the necessary experience, qualifications and skill set to ensure that Aramex

UK is fully compliant with the relevant tax laws and regulations. Group Tax Team collaborates with the Finance and business teams to ensure required tax compliance is maintained including providing guidance and obtaining external tax advice where necessary. Aramex employees and management have clear roles and responsibilities to ensure proper Corporate governance is maintained.

B. Governance, Assurance and Tax Risk Management

Aramex UK has high level of controls, systems and processes in place operationally and financially, to manage its tax risk and corporate governance.  

When reviewing tax risks associated with a specific decision or action Group Tax Team considers the following areas as part of the risk assessment:

  • Legal and fiduciary duties of directors and employees

  • Requirements of Aramex Code of Conduct and related policies or procedures

  • Maintenance of the Group’s corporate reputation and values, having particular regard to

    Aramex’s Core Values regarding the way we interact with the communities around us  

  • Impact on Aramex UK’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, Aramex UK’s reputation and possible impact on managing the relationship with HMRC.

Where there is uncertainty in how the relevant tax law should be applied and interpreted, Group Tax team will analyse the requirements and seek external tax advice as required to provide proper advice and guidance to the business. At all times, Aramex UK pursues to conform fully with the company’s regulatory and other obligations and to act in a manner which upholds its global reputation. The Board of Aramex UK does not accept high levels of risk in relation to UK taxation. 

C. Relationships with tax authorities

Aramex UK is committed to the principles of openness and transparency in its approach to dealing with the HMRC and other taxation authorities, including adherence to the OECD/G20 BEPS (Base Erosion and Profit Shifting) project and its implementation of 15 Action Points to address tax avoidance and harmful tax practices globally.  

All dealings with the HMRC and other relevant bodies will be conducted in a collaborative, courteous and timely manner. The aim would be to strive for early agreement on disputed matters, and to achieve certainty wherever possible. 

In particular, in its dealings with HMRC, Aramex UK commits to:

  • •open and collaborative professional relationships at all times with HMRC;

  • full, open and early dialogue with HMRC to discuss tax planning, strategy, risks and significant transactions;

Aramex UK Limited Tax Strategy  

  • making accurate and timely disclosure in correspondence and returns, and responding to queries and information requests in a timely fashion;

  • transparency around decision-making, governance and tax planning;

  • structuring transactions to give a tax result which, to the best of the company’s belief, is not inconsistent with the economic consequences (unless specific legislation anticipates that result), nor contrary to the intentions of Parliament; and

  • interpreting the relevant laws in a reasonable way, and ensure transactions are structured consistently.

D. Tax incentives and reliefs

Aramex UK believes that it should pay the amounts of tax legally due in the United Kingdom. Aramex UK will use its best judgement in determining the appropriate course of action, using available reliefs and incentives where possible and will seek professional advice as appropriate in accordance with its governance policy.

As stated above, we adopt the OECD guidelines and support initiatives to enhance international transparency on all taxation matters.  

Signed on behalf of Aramex UK Limited