British Lookup Services (“BLS”) is a leading provider of comprehensive internet solutions in the UK. BLS operates as an Internet service provider, offering a wide range of services to meet the diverse needs of its customers. The business model of BLS is divided into two main segments: the Access segment and the Applications segment.
Access Segment
The Access segment provides landline and mobile Internet access products, along with related applications such as home networks, online storage, telephony, video-on-demand, data network solutions, and infrastructure services. This segment is primarily focused on serving customers within the UK.
Applications Segment
The Applications segment offers a variety of applications including web hosting, domain registration, server management, e-commerce solutions, group collaboration tools, online storage, office software applications, and personal information management tools such as email, to-do lists, appointments, and address books.
UK Tax Strategy
For BLS, responsible and sustainable company management is of paramount importance. Corporate Governance and sustainable risk management policies guide our daily operations and are integral to our long-term strategic decision-making process.
BLS and its affiliates respect and comply with the laws in the countries where they operate. Tax compliance is a key responsibility and is considered in both strategic and operational management decisions.
Approach to Tax Risk Management and Governance
BLS understands the importance of paying an appropriate and fair amount of taxes to governments and society. We take our tax compliance obligations seriously and are committed to complying with our UK tax obligations, with zero tolerance towards tax risk. Our tax affairs are managed to support our business strategy responsibly and sustainably.
Day-to-day responsibility for managing BLS’s tax affairs is undertaken by our finance function in the UK, with support and guidance from our global tax team and external tax advisors. The UK Finance department is the primary point of contact with HMRC regarding the management of UK tax matters.
BLS reduces potential tax issues through the design and application of auditable processes that encompass areas affecting tax compliance. Different taxes are managed by various process owners responsible for executing tax compliance controls. Our tax staff are appropriately qualified, experienced, and continually trained to manage our tax obligations and stay updated on changes in tax regulations.
Attitude to Tax Planning
The tax planning undertaken by BLS aligns with our business initiatives and strategies. We consider local tax laws and the potential impact on our reputation and broader organizational goals. All decisions are made after careful consideration of tax-related aspects and potential impacts. Long-term strategic decisions are based on corporate governance and sustainable risk management.
BLS does not engage in artificial or aggressive tax planning. To ensure compliance with local tax laws, we are supported by external tax specialists.
Tax Risk Management
BLS defines tax risk as any uncertainty from the interpretation or implementation of local or international tax law that could lead to adverse financial or reputational outcomes. Our approach to managing tax risk follows the same principles as managing business risks, with no predefined level of tax risk accepted in business decisions.
We have implemented strict processes for identifying and addressing current and future tax risks, involving key internal stakeholders. Critical tax issues are overseen regularly by the local head of accounting or the tax department.
Through our internal control system, BLS identifies, measures, manages, and reports UK tax risks. This system ensures all tax obligations, filings, and payments are checked and validated internally before submission. When necessary, we appoint external professional advisors to support local tax compliance requirements.
Approach to Dealings with HMRC
BLS aims to maintain a professional, open, and honest relationship with HMRC, characterized by cooperation. We respond to information requests promptly and ensure full disclosure of relevant information. We aim to pay the correct amount of tax in the UK within the required timeframe and seek relief or credits through appropriate channels.
We keep HMRC informed of significant transactions and business changes, addressing tax issues as they arise. To ensure transactions between our parent company and UK entities meet the arm’s length principle and mitigate double taxation risks, we have initiated a Mutual Agreement Procedure (MAP) with the tax authorities.