Archer Limited and its subsidiary Archer (UK) Limited, regard the publication of this tax strategy as complying with our obligations under paragraphs 16(2) and 19 of the Finance Act 2016 in the UK.
Unless otherwise stated, references to “Archer” or “the Group” mean all UK companies within the Archer worldwide group.
Approach to risk management and governance arrangements in relation to UK taxation
Ultimate responsibility for tax policy rests with the Archer Limited Board of Directors. The Directors of each UK legal entity also have a duty to ensure that tax risk is managed, and that we have appropriate governance procedures in place. Archer Limited’s Board of Directors has oversight on the Executive Management Team and monitors governance of applicable laws and regulations. Archer Limited also has an Audit Committee which formally meets on a quarterly basis to consider among other areas, the Group’s tax position and key tax risks.
Archer manages tax risks as follows:
- A structure which provides leadership, governance and oversight to the way we do business and the day to day execution of our operations
- Appropriately skilled and qualified staff in the key roles which have an impact on our tax affairs
- Quarterly calculations and review of taxes (including assessment of risks)
- Training and updates to relevant legislation where appropriate
- On-going relationships with key advisers to ensure Archer is compliant with our tax obligations
- Seeking and documenting external advice to support tax decisions
This structure is underpinned by the Archer Group Code of Conduct as discussed below.
The day to day responsibility for Archer’s UK tax is delegated to the UK Financial Controller, with appropriate oversight from the Corporate Controller based in Stavanger. The UK Financial Controller is responsible for ensuring compliance with relevant legislation for corporation taxes, deduction and remittance of payroll taxes including National Insurance, VAT returns and any other taxes which may fall due in the course of our business.
Archer is committed to conduct its tax affairs in line with its Core Values, specifically to act in compliance with all local laws and regulations, including payment of taxes in a timely manner and reporting all information required by HMRC or other authority.
Archer Group has a Code of Conduct which applies to all its employees. This Code of Conduct (“the Code”) supports a fundamental Archer commitment – to comply with all applicable legal requirements and to ensure our employees act with the high ethical standards set out in the Code. Non-compliance with the Code could constitute a disciplinary matter for our employees, with appropriate sanctions thereafter.
The consideration of risks for the Group is an on-going process and is set out each year in our annual report. There are a number of tax risks that the company is exposed to, particularly around non-compliance with relevant legislation for the main taxes the company is subject to (corporation taxes, payroll taxes, including National Insurance, and VAT).
Attitude of the Group to tax planning (so far as affecting UK taxation), and level of risk in relation to UK taxation that the Group is prepared to accept
Archer manages its operations in a manner which seeks to maximise shareholder value. However Archer’s overriding principle is to ensure appropriate compliance with relevant laws and regulations. We will take advantage of appropriate reliefs and incentives but we will not pursue aggressive tax planning arrangements and we will keep our arrangements simple and transparent. As a result we will minimise our tax risks.
The Group seeks advice from its tax advisers regularly, and obtains written advice to ensure it is fully compliant with legislation.
Approach of the Group towards its dealings with HMRC
We are committed to a professional and transparent relationship with HMRC, and seek to have certainty on matters wherever possible.
We seek to ensure we have timely submission of all relevant returns and timely payment of all tax amounts due. This covers all the interactions the Group has with HMRC, including its obligations as a collector and remitter of payroll taxes.
Date published: December 2017