The following is the tax strategy for La-Z-Boy Incorporated for the financial year through to 30 April 2021.
The publication of this strategy statement is regarded as satisfying the statutory obligation under Para 16(2), schedule 19, Finance Act 2016. This Strategy applies to all taxes relevant to the UK Business and takes effect from the date of publication until superseded or otherwise replaced. La-Z-Boy UK, Ltd. is committed to conduct its tax affairs to comply with all relevant laws, rules, and regulations and reporting and disclosure requirements. The Company’s tax affairs are managed in a way which takes into account the Company’s wider reputation and standards of governance.
Risk Management and governance
La-Z-Boy UK, Ltd.’s tax strategy is aligned to our overall risk strategy and aims to achieve a low risk tax profile in the UK. The Company is committed to comply with all tax laws and regulations in all the jurisdictions in which we operate, including the UK, and involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available. Professional diligence and care is applied to our management of all risks associated with tax matters to evaluate those risks. Where there is uncertainty as to the application or interpretation of tax law, appropriate advice is taken from third party advisors.
The Company manages tax issues, and associated tax risks, through the detailed involvement of members of the senior finance leadership team, with oversight by the Secretary (Global VP of Taxes) and the Board of Directors.
Attitude towards tax planning
In structuring the Company’s commercial activities, we consider, among other factors, the tax laws of the countries within which we operate with a view to maximising value on a sustainable basis for our shareholders. Any tax planning undertaken will have commercial and economic substance and will have regard to the potential impact on our reputation and broader goals. The Company will not undertake planning that is contrived or artificial. We conduct any transactions between affiliated group companies on an arm’s length basis.
Levels of acceptable tax risk
La-Z-Boy UK, Ltd.’s policy is to minimise risk wherever possible when conducting our business affairs including tax matters. We actively seek to identity, evaluate, and monitor and manage UK tax risks. Where there is significant uncertainty or complexity in relation to a risk, external advice is sought. We seek to actively resolve any uncertainty in the interpretation of tax legislation with relevant tax authority and, with the support of our external advisors, monitor new tax legislative changes and realign internal tax processes where appropriate. Additionally, we intend to ensure that any risks are captured and resolved in a timely, proactive and transparent manner.
Approach towards dealing with HM Revenue & Customs (HMRC)
An important part of our tax strategy is the maintenance and development of a cooperative working relationship with HMRC. We engage with HMRC with honesty, integrity, respect and fairness and in a transparent manner.
Published 14th April 2020.