UK EFS Ltd Tax Policy
This document sets out the tax policy of UK EFS Ltd, the UK subsidiary of LGL Ltd, and relates to the year ended 31 December 2022. In making this tax policy document available the company is fulfilling its responsibilities under Schedule 19 of the Finance Act 2016. UK EFS Ltd’s Turnover and Balance Sheet figures are well below the thresholds for a standalone company to be required to publish a tax policy document, however this is required for the company by virtue of its ownership by GrandVision N.V., an optical retail group based in the Netherlands.
Our tax policy is guided by our customer-centric business model. We see responsible administration and payment of tax as a responsibility of our business.
As a wholly owned subsidiary of GrandVision N.V., we adhere to the principles and philosophy of that company. As regards tax, this is explained further in the following link:
https://www.grandvision.com/files/6/9/2/1/GrandVision NV Tax policy.pdf
A key principle of GrandVision’s tax strategy is to pay the right amount of tax in each jurisdiction of presence. This means that taxes are paid across the value chain in the jurisdictions of presence based on where value is created. In line with this, of the combined profits of LGL Ltd (registered in Guernsey) and UK EFS Ltd (together the Lenstore business), as most of the value is created in the UK, most of Lenstore’s profits are generated by UK EFS Ltd and are therefore subject to tax in the UK.
Managing Tax Risks
Tax risks will inevitably arise from time to time in relation to the interpretation of tax laws in the UK and elsewhere. The Finance team, with support from the GrandVision Group Tax team and external advisors where necessary, proactively seeks to identify, evaluate, manage and monitor these risks and keeps both Lenstore senior management and GrandVision informed as required.
Attitude towards tax risk
In making any business decisions that may have tax implications, as with any other business decisions, we will consider reputational and corporate social responsibility aspects of those decisions, as well as purely financial considerations.
Our focus is primarily on minimising tax risks to the business, rather than on seeking tax benefits, and thus, consistent with the approach of GrandVision, we have a low threshold of tolerance of tax risk.
Our approach to Tax planning
In considering how best to operate our business and implementing business changes we will have regard to a number of different considerations, one of which will be tax. However, any tax planning would only be undertaken if it had commercial and economic substance and would have regard to any potential impact on Lenstore’s reputation, brand and future working relationships with HMRC.
The company does not undertake tax planning that is contrived or artificial.
Working with HMRC
When submitting tax returns to HMRC, the company discloses all relevant facts and identifies transactions or issues where it considers that there is potential for the tax treatment to be uncertain. Given its size, the company has only infrequent interactions with HMRC and other tax authorities.