Tax strategy in the UK

Triumph International Limited (“Triumph UK”) was founded in 1954 as a UK-registered subsidiary of the Triumph International Group, which was itself founded in 1886 in Germany.

Triumph International Group refers to Triumph Holding AG, incorporated in Switzerland, and its worldwide subsidiaries (collectively referred to as “Triumph International Group” or the “Group”). The main business of the Triumph International Group is the manufacture, distribution and sale of underwear through wholesale and retail channels. The Triumph International Group is one of the leading underwear companies in the world. The main product segments of the Triumph International Group are garments, such as intimate apparel, lingerie, swimwear, nightwear and loungewear. Triumph International Group operates under two main own brands, Triumph and sloggi, as well as producing for independent third-party labels (referred to as the “Private Label Business”).

Triumph UK operates as a sales and distribution entity, responsible for the UK and Republic of Ireland markets.

This UK tax strategy is approved by the Board of Directors of Triumph UK and the Global Tax Department (based at the Group’s headquarters in Wallisellen, Switzerland) and applies to the obligations of Triumph UK with respect to UK taxation.

“UK taxation” where used in this document refers to UK Corporation Tax, indirect taxes (including Value Added Tax (“VAT”), Stamp Duty Land Tax), Customs Duties, employment taxes (including PAYE) income taxes / National Insurance) and other applicable tax matters.

This UK tax strategy is published in compliance with Schedule 19 of Finance Act 2016.

Tax risk management and governance arrangements

As part of a multinational group, the tax policies and procedures relating to the UK tax affairs of Triumph UK are based on those designed and supported by the Global Tax Department for the wider group.

As applied to the UK, the key tax policies and procedures include the following:

• The UK Finance Department is responsible for the routine management of the UK business including filing, payment obligations and preparation of tax accounting information.
• External tax advisors are engaged in order to assist with the preparation of UK Corporation Tax returns, and to provide ad hoc advice on more complex or non-routine matters as may arise in these areas. Payroll tax filings in the UK and Ireland are managed by external providers. Where tax uncertainties arise, Triumph UK seeks professional advice from external tax advisors to ensure compliance with UK tax law and alignment with commercial objectives.
• The Global Tax Department is regularly consulted on tax matters that are material or have strategic relevance for the group, such as non-routine transactions and the implementation of controls and procedures to manage and reduce tax risk. The UK Finance Department reports all significant or non-routine tax matters to the Global Tax Department and European Chief Finance Officer. Depending on complexity, specialist external advice may be taken, and material transactions are routinely escalated to the Global Chief Finance Officer for approval.

Tax planning and risk appetite

The Triumph International Group aims to structure all transactions in a compliant and tax efficient manner, applying professional care and judgement and with due regard to the guidance issued by the Organisation for Economic Co-operation and Development (“OECD”) for international tax matters.

Triumph UK has a low tolerance for tax risk, does not engage in artificial or aggressive tax arrangements and aims to ensure that outcomes are consistent with commercial realities. Triumph UK does not enter transactions with the primary or sole purpose of achieving tax advantages or engaging in tax avoidance.

By implementation of this UK tax strategy and the policies and procedures summarised herein, the business aims to comply with obligations in respect of UK taxation in such a way as to minimise the risk of tax audit and prevent unexpected deviations from tax provisions made.

Approach to dealings with HMRC

Triumph UK adopts the following approach to dealings with HM Revenue & Customs:

• Triumph UK aims to submit all required filings and make all payments in relation to UK taxation in an accurate and timely manner, and in compliance with all applicable tax laws and disclosure requirements.
• Triumph UK aims to maintain a professional, co-operative and transparent approach to communications with HM Revenue & Customs, and to respond to any requests received in a timely manner. Triumph UK aims to resolve any issues or disagreements which may arise from time to time in a collaborative and open manner.
• Triumph UK aims to disclose any inadvertent errors or omissions in tax returns or underpayments of tax in a timely manner once they have been identified.