In compliance with section 161 and section 19(2) of schedule 19 Finance Act 2016 Mary Kay is publishing its tax strategy for the year ending 31 December 2018 for the following UK entities in respect of UK taxation:
• Mary Kay Cosmetics (UK) Ltd
• Pink Rose Information System Services Ltd
Overall, Mary Kay’s tax strategy is to:
• Ensure timely filing of all appropriate tax returns and tax payments;
• Manage tax liability within laws as prescribed by the relevant authorities;
• Consider the tax implications of business decisions;
Tax risk management and governance
Mary Kay has established procedures to proactively identify, assess, manage and disclose tax risks. We also engage external advice for uncertain and complex tax issues to ensure we are compliant with tax legislation.
Mary Kay works closely with its board of directors and employees to review our risk management strategy and effectiveness of our internal controls. Responsibility for UK tax risk management is delegated to the UK finance team with support and oversight provided by the Mary Kay Corporate Tax department. In addition, our tax compliance and internal controls are subject to internal corporate review as well as external audit.
Attitude towards tax planning
Among the factors we carefully analyze when structuring our business and establishing tax positions is the tax laws and regulations of the countries where we operate. We do not engage in unreasonable or aggressive interpretations of tax laws and regulations that would lead to avoidance of our UK tax liability. Our tax planning supports our commercial substance and is based on careful consideration of our ethical principles.
Attitude towards risk
We have processes in place to ensure opportune identification and compliance with tax laws and regulations. When there is uncertainty or complexity on a tax position, we seek professional advice to carefully analyze and evaluate the situation to mitigate risk for the company and our stakeholders. We assess tax risk on a case by case basis. It is a priority for our board of directors to ensure compliance with all laws and regulations globally.
Relationship with HMRC
We are committed to timely compliance with all obligations established by the law and requirements from the tax authorities. We want to establish a professional relationship with HMRC based on honesty and openness.
Likewise, in the event of a disagreement with the HMRC, we would diligently review the situation and prepare to utilize available channels and following the procedures established by the HMRC for resolution of the matter.
Published December 22, 2018