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TAX AND INVESTMENT STRATEGY

This statement, approved by the Board of Princess Yachts Limited sets out our policy and approach to conducting its tax affairs and dealing with tax risk, and is made available to all Princess Yachts Limited stakeholders. We consider that this statement complies with Princess Yachts Limited obligation under the Schedule 19 of the Finance Act 2016. It is effective for the year ending 31 December 2023, and will remain in effect until any amendments are approved by the Board.

 

TAX MANAGEMENT AND GOVERNANCE

Princess Yachts (Holdings) Limited and its subsidiaries have robust internal policies, processes and training to ensure we have alignment across our business and meet our tax obligations. Our Chief Financial Officer is responsible for implementing and maintaining our policies and risk management. In operating our tax risk management and governance, we have adopted the following principles:
a) a low appetite towards tax risk,
b) commitment to full compliance with our tax obligations,
c) a proactive approach to communications with all tax authorities, and
d) paying the correct amount of tax on time.

 

INVESTMENT AND FUNDING

We continually work with our ultimate majority owners (“KPS Capital Partners”) and advisers on strategic options for the growth of the business, including a refinancing, a possible IPO and shareholder investment.

 

TAX PLANNING AND RISK

In accordance with internal policies, our approach is to ensure we comply with the relevant UK and relevant overseas laws and legislation relating to tax. Tax planning is based on commercial business activity, and the company does not implement or utilise tax avoidance strategies that exploit gaps and mismatches in tax rules. We aim to ensure our tax position in any planning activity is consistent with our policies and we take external advice where appropriate.

 

PRINCESS YACHTS LIMITED RELATIONSHIP WITH HM REVENUE & CUSTOMS (“HMRC”)

We are committed to engage openly and constructively with HMRC and our HMRC customer relationship manager. We make fair, accurate and timely disclosure in correspondence and returns and ensure all interactions with HMRC are conducted in an open, collaborative and professional manner. Where appropriate we are open and transparent about decision-making, governance and tax planning, so as to minimise our tax risk and to provide greater certainty for both parties in advance of formal tax filings.