The CareTech Group is a leading provider of healthcare, education, social care, training and technology innovations. For close to 32 years, we have offered specialist, high quality services for children, young people and adults with complex needs in more than 550 locations in the UK and internationally. CareTech’s Smartbox solutions are pioneering innovative assistive technology and enabling enhanced levels of independence for service users. Through our subsidiaries Purple and EnableAll, we strive to create equality and challenge the narrative around disability and inclusion.
CareTech, which was founded in 1993, was delisted from the London Stock Exchange in 2022 and is an indirect subsidiary of Amalfi Topco Limited. The Group’s vision is a world where there is equal opportunity for a life fully lived. To play our part in this vision, we enable children, young people and adults with complex needs to make their own life choices, and to develop confidence and independence to live, learn, thrive and engage, building better futures. We refer to this as providing Extraordinary Days, Every Day. Our obligation is to manage reputational and financial risk and also maximise shareholder value. Our approach to taxation supports this obligation.
The Group’s approach to tax matters is to act in a responsible manner and in accordance with the laws and objectives of the territories in which we operate. The Group seeks to pay, at the right time, the correct amount of taxes due, both direct and indirect, in accordance with all relevant tax laws and regulations.
Scope
This statement is prepared in accordance with the requirements of Part 2, Schedule 19, Finance Act 2016 in relation to the financial year ended 30 September 2019. It applies to all companies that are consolidated in the accounts of CareTech Holdings Plc. This Tax Strategy is applicable across the CareTech Group and applies to all employees and Directors involved in any aspect of the Group’s tax affairs. The Taxes that are to be considered to be within the scope of the Tax Strategy include all taxes and duties that are set out in paragraph 15(1) of schedule 19 of Finance Act 2016. These include (but are not limited to) income taxes, corporation tax, VAT, amounts accountable under PAYE regulations, property taxes, customs duties and corresponding worldwide taxes.
Our Tax governance framework
The Board has overall responsibility for managing and controlling risk, including tax risk, within the Group. The Group Board recognises the importance of tax risk management as part of the day-to-day management of the business. The Chief Finance Officer is responsible for overall management of our tax affairs.
We seek to ensure that our taxes are managed in a sustainable manner with a high degree of integrity, which is one of our core values. Our approach seeks to ensure that:
Tax matters are proactively managed by having a clear internal governance framework, robust business controls and processes, and maintaining an open and regular dialogue with the tax authorities
We are fully transparent and comply with the law so that tax returns and payments made on time and proper disclosure is made to the tax authorities; and
Each business applies a consistent approach to taxation
Specialist tax advice is sought where appropriate.
Attitude to tax planning
CareTech manages tax risks to ensure payment of the right amount of tax and compliance with tax regulations. In structuring the Group’s commercial activities relevant tax laws will be considered. Any tax structuring undertaken will be aligned with the commercial motivation. Where tax reliefs and incentives are available to support our business they will be claimed in the manner intended.
Tax advisors
The Group takes appropriate advice from reputable professional advisers to ensure compliance with applicable rules and regulations, and to consider potential mitigating actions in order to manage tax risks. In particular tax advice is obtained on complex or material transactions outside of the day-today activities of the Group, to ensure compliance with tax laws and that transactions are correctly reflected and disclosed in the appropriate tax filings.
Relationships with tax authorities
The Group aims to establish and maintain transparent and constructive relationships with all relevant tax authorities, to comply fully with regulatory obligations and to uphold its reputation as a responsible corporate citizen. Should a tax related dispute arise then CareTech aims promptly to address and resolve the issue with the relevant tax authority in a responsible, cooperative and timely manner.