Aesop UK Limited - Tax Policy

Aesop UK Limited regards this publication as complying with the duty under para 16(2) and para 25(1), Sch 19 FA16. This document has been approved by the Directors of Aesop UK Limited and applies to the Aesop UK Limited entity. OVERVIEW This document sets out Aesop UK Limited’s (“Aesop”) approach to the management of UK taxation matters impacting on the business and defines the principles governing the management of such taxes. Aesop has always been guided by the principle that business is a force for good. This underpins all aspects of the Aesop Group and aims to reaffirm Aesop’s position as a supporter in ethical business. These principles extend to Aesop’s tax strategy. Aesop must identify, evaluate and properly manage all key tax risks. It aims to ensure all taxation compliance is properly controlled and managed to meet Aesop’s legal obligation to fulfil its duties under the relevant taxation laws. It maintains strong, open and professional working relationships with the relevant taxation authority(ies) and consults with external advisors as appropriate. Aesop adopts a compliant approach to tax management. 1) GOVERNANCE AND MANAGEMENT OF TAX RISKS The Directors have delegated to its General Management team overall responsibility for the management of tax aspects of the functions for which they are responsible. The Global Head of Tax manages all direct and indirect tax matters and reports to the Global Finance Director. The Global Finance Director reports to the Chief Financial Officer who has overall responsibility for tax, including oversight with other General Managers where their teams have operational responsibility for some transactions which impact tax. 2) RESPONSIBLE ATTITUDE TO MANAGING TAX AFFAIRS Aesop aligns with the wider Aesop Group policies concerning business, customer and supplier relationships with third parties and does not engage in tax planning or tax structuring for the principle or primary purpose of gaining tax advantages. Aesop aims for material compliance with all laws, having regard to the spirit as well as the letter of the law; all transactions must be aligned with Aesop’s values and must have a commercial purpose. Aesop’s management of taxes is primarily driven by the key objective to ensure full compliance with the commitments above and to minimise tax risk. Effective coordination and communications play a crucial part towards the achievement of this objective and stakeholders are consulted on and must advise on any significant transaction or variation to existing arrangements prior to Aesop making any commitment. 3) EFFECTIVE MANAGEMENT OF TAX RISKS AND MITIGATING CONTROLS Aesop’s aim is to minimise risk as far as possible, driven especially by its focus on avoiding any unexpected impact on performance through crystallisation of risks but more crucially to avoid any adverse impact on its brand and reputation. This consideration is fundamental to the brand and one of the key aspects of interest for its customers. Aesop employs suitably qualified tax staff and external tax advisors are consulted to ensure Aesop is appropriately managing its tax risk where issues are complex or potentially material; or where the matter is uncertain and expert opinion is required. Clear ownership and effective operation of end-to-end processes and the clear demarcation of roles and responsibilities to identify and control tax risks are fundamental to the successful management of Aesop’s tax affairs, which are clearly communicated. The individuals responsible for tax work very closely with the business and are involved in and consulted on projects. 4) CONSTRUCTIVE AND COLLABORATIVE APPROACH TO WORKING WITH HMRC Aesop engages in an open and collaborative relationship with HMRC. Where appropriate, Aesop engage with HMRC in real time to discuss and agree specific issues or positions, and where inadvertent errors are identified, these are disclosed promptly to HMRC and corrections agreed.