Tax Strategy - Can-Am Off-Road
Last Updated: 02/11/2019
PREPARED IN ACCORDANCE WITH THE REQUIREMENTS OF THE FINANCE ACT 2016 SCHEDULE 19
This approach applies to BRP Recreational Products UK Ltd., an entity performing commercial representation services in the UK.
BRP Recreational Products UK Ltd. is ultimately a subsidiary of BRP Inc. (“BRP”), a Canadian public company, listed on the TSX under the symbol “DOO”.
Given the limited size and complexity of BRP Recreational Products UK Ltd.’s operations, the tax risks, which are mainly related to compliance risk or operational risk, are minimal and largely procedural.
Risk management and governance in relation to UK taxation
The governance of our business is led by BRP’s Board of Directors, which is committed to ensuring that BRP continues to meet its business, financial and sustainability objectives. The Board of Directors also has overall responsibility for governance, risk management and taxation strategy.
The Chief Financial Officer (“CFO”) and the Director International Taxation are key to ensuring that the tax approach is achieved. Together they are responsible for the management of all taxes which impact the business including all taxes arising in respect of transactions. Day to day administration of these taxes is delegated to appropriately qualified individuals of the Finance team, with appropriate internal review procedures and the input of qualified external tax advisors where necessary. Procedures are regularly reviewed to ensure the processes are up to date and in order to identify, manage and mitigate tax risks.
The CFO and the Director International Taxation report to the Audit Committee on BRP’s tax affairs and risks at least once a year, and appropriate oversight is provided to the Board of Directors by the Audit Committee.
Attitude towards tax planning and level of risk
We engaged in efficient tax planning and operating model that support our business and reflects commercial and economic activity. We do not engage in artificial tax arrangements.
Transactions between BRP’s entities are conducted based on the arm’s length principle.
Tax incentives and exemptions are sometimes implemented by governments and fiscal authorities in order to support investment, employment and economic development. Where they exist, we seek to apply them in the intended manner.
The level of risk which BRP accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the group’s tax affairs. At all times, BRP seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, BRP’s Board of Directors is ultimately responsible for the management of risks, including tax risks.
Relationship with tax authorities and HMRC
We are committed to maintaining an open, transparent and collaborative approach to our dealings with tax authorities and HMRC.
We take care of ensuring that our tax affairs are reported accurately. If we were to identify an error in a submission made to HMRC, we would seek to voluntarily disclose it, quantifying the effect of the error and paying any additional tax, interest and penalties that may become due as a result.
This approach applies from the date of publication until it is superseded.