Sonatrach Gas Marketing UK Limited (“SGM UK”) – UK Tax Strategy
This tax strategy has been published in accordance with section 22 (2) of Schedule 19 of the United Kingdom’s Finance Act 2016 in respect of SGM UK which is a Limited Company in England and Wales for the financial year ending 31 December 2019.
This strategy applies to all taxes relevant to the SGM UK business and takes effect from the date of publication until superseded or otherwise replaced.
Our strategy is to manage the tax position of the SGM UK business in compliance with relevant laws and regulations, under an appropriate risk control framework, while maintaining the SGM UK business’s reputation and good relationships with the UK tax authorities.
SONATRACH GAS MARKETING UK LIMITED was incorporated in the United Kingdom on December 7, 2005 in accordance with the Companies Act 1985.
The company has one office, located in London.
The company’s principal activity is the trading and supply of natural gas (“SGM UK business”).
SGM UK is committed to ensure the integrity of our tax affairs and to ensure compliance with all our tax obligations in the United Kingdom.
SGM UK is committed to conduct its tax affairs consistent with the following objectives:
1. Comply with all relevant laws, rules, regulations and reporting and disclosure requirements.
2. Apply professional diligence and care in the management of all risks, including tax matters, and ensure governance and assurance procedures are appropriate to the risk being managed.
3. Identify, evaluate, monitor and manage tax, legal and regulatory risks.
4. Foster constructive, professional and transparent relationships with tax authorities, based on the concepts of integrity, collaboration and mutual trust.
Our approach to risk management and governance arrangements in relation to UK taxation
SGM UK is fully committed to complying with the tax laws in all the countries in which it operates. Compliance for us means paying the right amount of tax in the right place at the right time. It involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.
In the United Kingdom, ultimate responsibility for the implementation and oversight of the SGM UK business’s strategy rests with the Board of Directors. The United Kingdom based Head of Finance & Administration is responsible for the day to day management of tax matters.
We are risk averse and have robust controls in place in order to mitigate tax risks. Any Tax issues are escalated to the Board of Directors on a regular basis, enabling the Board of Directors to have visibility and control over tax matters. We also seek professional tax advice when we consider any transaction to be either outside the normal course of our business or encounter a complex tax matter and any advice will be reported to the Board of Directors for them to consider and act upon.
The level of risk in relation to UK taxation that we are prepared to accept
We have a low tolerance for tax risk in the United Kingdom, as we do in all the jurisdictions in which we operate. Our attitude towards tax risk is primarily governed by the Board of Directors’ objective to minimise any tax risk and we therefore ensure that the Board of Directors has an appropriate level of oversight on tax matters. Where we encounter any uncertain tax matters, we seek advice from a professional third-party adviser to minimise tax risk.
The level of risk which SGM UK accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the firm’s tax affairs. At all times SGM UK 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.
Our attitude towards tax planning
We aim to ensure that all transactions we enter into are consistent with our commercial rationale, and tax is just one of the commercial factors that we consider when entering into a transaction. We seek to comply with all applicable tax law and utilise available tax allowances in the spirit in which they were intended by the legislation. We use reliefs and elections that are available to us, using specialist third party advice when needed.
Approach towards our dealings with HMRC
In the United Kingdom, we aim to have an open, honest and transparent relationship with HMRC across all taxes. We seek to raise areas of uncertainty with HMRC as soon as they arise in order to minimise tax risk and always respond promptly and fully to any requests from HMRC in respect of our tax affairs. We aim to have an open and engaged relationship with our HMRC Customer Relationship Manager.