Last updated: 16 May 2023
Background
This Group Tax Strategy (“Strategy”) applies to Gymshark Group Limited (the Company or together with its subsidiaries the “Group” or “Gymshark”) and its UK affiliates (referred to in first person), and has been approved by the Board of Directors.
Gymshark is a conditioning brand, apparel and accessories manufacturer and online retailer based in the United Kingdom. We are committed to complying with tax law and practice in all territories in which we operate, including the UK, which is our main home of business.
Following legislation introduced in 2016, large companies trading in the UK are required by Her Majesty’s Revenue and Customs (“HMRC”) to publish a Tax Strategy. So, here’s ours. This document sets out our Tax Strategy and the policies and procedures in place within our business which we are committed to following and successfully implementing.
This strategy meets the requirements under Schedule 19, Finance Act 2016 in the UK.
Overriding Objective
Our overriding objective is to manage the tax affairs of our Group in accordance with the spirit and letter of the law.
Aims
Our aims are:
- to ensure we pay the right amount of tax, in the right place, at the right time;
- to manage our tax affairs as efficiently as possible while also supporting our wider commercial objectives;
- to maintain strong compliance controls;
- to operate a policy of open and transparent communication with the tax authorities in each jurisdiction we operate in;
- to maintain an acceptable level of tax risk as deemed appropriate by our Chief Financial Officer and our Board of Directors; and,
- to achieve these aims through the delivery of the key principles outlined below.
Key Principles
1. Effective Management of Tax Risks
This Strategy is part of our effective management of tax, setting the structures to ensure that suitable controls and processes are in place to enable us to meet our obligations in regard to tax reporting and compliance.
These controls and processes enable us to effectively manage the tax issues facing the business. Tax issues and the associated tax risks are managed by a senior leadership team which includes our Chief Financial Officer and Head of Tax.
The level of risk which we accept in relation to tax is consistent with our overall objective of achieving compliance and transparency in our tax affairs. We aim to operate a low-risk approach and seek to minimise risk where possible.
Our key tax risks, and any associated issues that develop, are monitored and presented on a regular basis to our Chief Financial Officer and managed by our Head of Tax. Action is then taken to ensure the risks are minimised. Our Tax Strategy has been approved by the Board.
We’re continually developing and implementing control structures which underpin our Tax Strategy. These controls are subject to the attention provided by our Tax Department and managed by our Head of Tax.
The responsibility for ensuring the:
- day to day application of our Tax Strategy; and
- the management of our tax affairs,
are managed by our Head of Tax.
2. Responsible Attitude to Tax Planning
We’ll consider tax planning opportunities which deliver value and align with our commercial objectives, while always seeking to maintain a low level of tax risk. This includes seeking to benefit from available tax reliefs and incentives, in line with the spirit and letter of the law.
We’ll pay full attention to any potential impact on our reputation and perception in our audience while evaluating the tax implications of any significant business decisions and transactions we make. Any tax planning will have commercial and economic substance.
Appropriate advice from external advisers is sought where any unusual or complex matters cause significant uncertainty.
3. Constructive and Transparent Dialogue with HMRC
We’ll engage with HMRC in open and transparent communication in regard to any on-going matters. And, where appropriate, we’ll engage with HMRC on a real-time basis to minimise tax risk as part of our effective management of tax.
In the event of HMRC enquiry into our tax affairs, we’ll always seek to engage with them in the spirit of co-operative compliance, which supports our tax objectives and aims as set out in this Strategy.
Approved by the Board of Directors and on their behalf:
Mathew Dunn
Chief Financial Officer
May 2023