Topcast Aviation Europe Limited (“TAEL”) belongs to the Topcast Group (“Topcast”). Topcast was founded in 1991 and headquartered in Hong Kong SAR, with nineteen offices across Asia Pacific, Latin America, the Middle East, the United States and the United Kingdom. Topcast connects suppliers with customers in all segments of aviation including airlines, Maintenance, Repair, and Overhaul (MRO) service providers and Original Equipment Manufacturers (OEMs). TAEL acts as a UK Sales Office for the Topcast with an annual turnover of approximately £3m.
TAEL is ultimately majority owned by funds advised by the Private Equity firm Permira (“Permira”) which acquired a controlling stake in the business on 2 December 2019. Permira has structured its investment in the business through Permira VI Investment Platform Limited, a holding company that has investments in businesses across a number of different activities and geographies, including the UK. Whilst this tax strategy document applies to TAEL, it is aligned with the principles set out in the tax strategy document published by its parent company, Permira VI Investment Platform Limited.
The TAEL Board is responsible for reviewing and approving this Tax Strategy and ensuring there is an appropriate framework for its implementation and for the identification and management of tax risk. The publication of this tax strategy is regarded as satisfying the statutory obligation, under Paragraph 16(2) of Schedule 19 of the UK Finance Act 2016, for Topcast Aviation Europe Limited (‘TAEL’) for the period ended 31 December 2021.
The TAEL Tax Strategy Statement comprises of the following 4 key sections:
- Risk Management and Governance Arrangements
TAEL’s policy is to comply with all applicable UK tax legislation, regulations, reporting and disclosure requirements. The daily management of TAEL’s tax affairs is the responsibility of the Finance team, assisted by our external professional tax advisor who supports the team in understanding changes to the UK tax system and filing complete and accurate tax returns in accordance with HMRC guidance. TAEL has implemented a tax control framework to help identify, assess and manage tax risks in order to help ensure ongoing compliance. The Board and management team oversee the approach to tax governance in line with the overall business strategy and the Senior Accounting Officer is formally accountable for ensuring an appropriate tax governance and control framework is in place. The Board is updated of any significant tax issues requiring its oversight or input as required.
- Attitude towards Tax Planning
TAEL complies with the Group’s effective and comprehensive approach to managing risk, which is underpinned by our Code of Ethics and supported by company policies and standard operating procedures. Our approach to tax is designed to manage tax risks in a manner that is consistent with our core values and mission, which is to provide innovative solutions and services while developing long-term partnerships with our principals and customers.
In accordance with our core values and internal control risk management approach, we adopt a low-risk approach when considering our UK tax affairs. To the extent that TAEL undertakes any tax planning, it is with the purpose to support the commercial needs of the business, is within the overall risk appetite of the group and is supported by external tax advisors as appropriate.
- Level of Acceptable Risk
As with TAEL’s business risk appetite, we have a low tolerance towards tax risks. We seek to minimize the risk of a dispute with HMRC by being open and transparent about our tax affairs. With respect to transactions in which there could be significant uncertainty or complexity as to the tax treatment, we would seek advice from our external tax advisors to ensure that the correct tax treatment is applied, and that the tax impact of any transactions is well understood and aligned with our tax strategy.
- Approach towards Dealings with HMRC
TAEL seeks to comply with all global tax reporting requirements and payment obligations. We engage and cooperate with HMRC by maintaining an open and transparent relationship based on integrity, respect and fairness. We aim to make accurate and timely disclosure in correspondence and returns, and respond to queries and information requests in a timely manner. We ensure all interactions with HMRC are conducted in a collaborative and professional way.