Kuoni has continued to set the pace in luxury worldwide travel in the UK market for over fifty years and is regularly voted one of the best holiday companies in the country by readers of national newspapers and travel industry titles. The company excels in creating tailor-made holidays to more than 90 destinations around the world.
The Kuoni UK group has 47 Kuoni-branded retail outlets and six tour operating brands, which contract airline seats, hotels and the services of destination management companies in holiday destinations around the world through a mix of both owned and third party suppliers.
Our business activities generate a large amount and variety of taxes. We pay corporate income taxes, stamp duties, employment and other taxes. In addition we collect and pay employee taxes as well as indirect taxes such as VAT. Our approach to tax has been built around the requirements detailed at paragraph 19(2) of Schedule 19 of the Finance Act 2016, and is applicable for the financial year ending 31 December 2021.
Kuoni is committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities. Kuoni supports efforts to increase public trust in tax systems. The Kuoni code of conduct sets out what is expected of everyone in the business and our approach to tax aligns with that.
1. Tax planning
We engage in efficient tax planning that supports our business and reflects commercial and economic activity. We adhere to relevant tax law and we seek to minimize the risk of uncertainty or disputes. We conduct transactions within the DER Touristik group on an arm’s-length basis and in accordance with current OECD principles.
Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities including HMRC in the UK, in order to support investment, employment and economic development. Where they exist we seek to apply them in the manner intended.
2. Relationships with governments
We seek to build and sustain relationships with governments and fiscal authorities that are constructive and based on mutual respect. We work collaboratively wherever possible with fiscal authorities to resolve disputes and to achieve early agreement and certainty. We engage with governments on the development of tax laws either directly or through trade associations and other similar bodies as appropriate.
We support the principle behind multilateral moves towards greater transparency that increase understanding of tax systems and build public trust.
4. Tax risk management
We follow DER Touristik’s risk management system as part of our internal control processes. We have a low tolerance for tax risk. We identify, assess and manage tax risks and account for them appropriately. We implement risk management measures including controls over compliance processes and monitor their effectiveness on an ongoing basis.
The group Finance Director owns and implements our approach to tax which is approved by the main board. The group Finance Director is also responsible for ensuring that policies and procedures that support the approach are in place, maintained and used consistently around the UK group.