Tax strategy (UK)
A tax strategy is a document required to be published annually by businesses which operate in the United Kingdom with a turnover above £200m or a balance sheet above £2 billion. This requirement is set out in Section 161 of the Finance Act 2016. A group of companies may produce a "group tax strategy". Components. A company's tax strategy must set out: (a) the company's approach to risk management and governance arrangements in relation to UK taxation, (b) the company's attitude towards tax planning (so far as affecting UK taxation), (c ) the level of risk in relation to UK taxation that the company is prepared to accept, (d) the company's approach towards its dealings with HMRC. A company meeting the turnover or balance sheet thresholds which fails to comply may be fined. Accountants Ernst and Young estimate that over 2000 UK businesses are affected by this requirement.