The recent change in the UK Government is not expected to have any immediate impact on Everest Assets Group's risk and tax policies. However, we anticipate that changes to legislation, regulation, and the implementation and interpretation of UK government policies will likely be in a state of flux for some years. As a result, we remain vigilant and prepared to adapt our strategies as necessary to ensure compliance and maintain our robust risk management framework. This proactive approach will help us navigate potential uncertainties and continue to safeguard the interests of our stakeholders.
Risk Management Strategy
At Everest Assets Group (EAG), we are committed to maintaining a comprehensive and effective risk management strategy. Our approach involves identifying, assessing, and mitigating potential risks to safeguard the interests of our stakeholders. In instances where a dedicated committee for specific risk management functions does not yet exist, these responsibilities will be fulfilled by the EAG Board of Directors. This ensures that all aspects of our risk management framework are overseen at the highest level, guaranteeing rigorous oversight and strategic alignment with our organizational goals. Through this approach, we maintain our commitment to proactive and adaptive risk management practices, ensuring resilience and long-term success.
At Everest Assets Group (EAG), risk management is an integral set of processes and practices designed to identify, assess, and mitigate potential risks and negative consequences. Our approach encompasses protecting not only our direct employees and EAG Directors but also the staff and directors of all our acquired companies. Our risk management strategy includes addressing a wide array of risks, such as:
Physical Risks: Ensuring the safety and well-being of all personnel by implementing robust health and safety protocols and regularly reviewing and upgrading workplace safety measures.
Operational Risks: Identifying and mitigating risks related to the day-to-day operations of EAG and our acquired companies. This includes process disruptions, supply chain vulnerabilities, and integration challenges post-acquisition.
Financial Risks: Managing financial exposures, including credit risk, liquidity risk, and market risk. Our strategies involve thorough financial planning, regular audits, and implementing controls to safeguard against economic downturns and market volatility.
Economic Risks: Monitoring and preparing for macroeconomic changes that could impact our business environment. This involves staying informed about regulatory changes, inflation rates, and global economic trends.
Environmental Risks: Committing to sustainable practices and assessing the environmental impact of our operations. We aim to minimize our carbon footprint and comply with all relevant environmental regulations to protect natural resources and promote sustainability.
IoT Risks: Managing the increased number of risk management and security challenges posed by the growth of the Internet of Things (IoT). This includes preventing, and if necessary, addressing system failures, security breaches, data loss, and other scenarios as the number of connected devices continues to grow.
Through these comprehensive risk management practices, EAG aims to create a secure and resilient environment that supports our strategic goals and ensures long-term success for all stakeholders involved.
Risk is inevitable and cannot be completely avoided or eliminated, but it can be minimized. According to ISO 31000 standards for risk management, "risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety, and societal outcomes." In the context of IoT, SaaS, Cloud computing, and the provision of cybersecurity, risk management enables organizations to effectively use emerging technologies while mitigating inherent potential hazards, such as system failures, security breaches, data loss, and other scenarios. The significant growth of the Internet of Things (IoT) has dramatically increased the number of risk management and security challenges businesses face. Cybercriminals are launching more sophisticated and potentially damaging attacks, and the number of devices that need securing continues to grow as the IoT expands.
Through these comprehensive risk management practices, EAG aims to create a secure and resilient environment that supports our strategic goals and ensures long-term success for all stakeholders involved.
EAG Tax Strategy
EAG regards the publication of this tax strategy as complying with our obligation under paragraph 16(2) of Schedule 19 of the Finance Act 2016, in respect of the financial year ending 31 July 2025. This tax strategy applies to all EAG entities (“EAG”).
Tax Risk Management and Governance: EAG’s policy is to comply with all applicable laws, rules, regulations, and reporting requirements relevant to the Group. Tax compliance is key to the Group, and EAG manages tax in line with its governance framework and risk management procedures, reflecting the regulatory, legal, and commercial environment in which EAG operates. EAG strives to comply with the spirit as well as the letter of the law and seeks to pay the right amount of tax, at the right time, and in the right place.
EAG has a robust risk management process to identify key risks, assign ownership for each risk at a senior management level, identify existing and planned management activities against each risk, assess the residual likelihood and impact of each risk, and ensure ongoing monitoring and reporting of each key risk.
EAG has a risk management framework which provides guidance on the Group’s risk management processes. Audit Board is the risk and controls management system used across EAG and sets out roles and responsibilities which guide the risk management culture within the EAG Group. It details the internal controls that EAG needs to manage risk for the long- and short-term success of the business. Captured within Audit Board are the procedures and controls that are embedded in the approach EAG takes to managing risk, including tax risk. Internal Audit is responsible for regularly monitoring and testing the effective operation of EAG’s tax control framework.
Overall accountability for the management of risk resides with the Executive Committee, and that responsibility is delegated to the Risk Review Committee and Compliance Committee. These Committees oversee the Corporate Risk Register, which includes tax risk, and compliance throughout the business with EAG’s policies.
The Risk Owner for tax is the Chief Financial Officer (CFO). The CFO will assign the day-to-day operations for the management of tax to the Tax Function, an outsourced expert, who will work closely with the business. The Tax Function provides an oversight role in identifying, managing, and monitoring tax risk, in addition to providing advice on tax issues and preparing or reviewing tax filings. EAG’s Tax Function consists of suitably qualified and experienced individuals who have development plans in place to support their ongoing training to ensure they remain up to date with changes in legislation and industry practice.
Where there is uncertainty or complexity in how relevant tax law should be applied, external advice may be sought to support EAG’s decision-making process, including, where necessary, support with EAG’s tax compliance filing obligations.
Key tax risk indicators are tracked and reported to the Executive Committee for consideration on a periodic basis.
Approach to Tax Planning: As required by EAG Group’s Code of Conduct, EAG strives to foster a culture of honesty and accountability. EAG’s commitment to the highest level of ethical conduct should be reflected in all of EAG’s business activities, including with governments and government agencies. All of EAG’s employees, officers, and directors must conduct themselves according to the language and spirit of this Code.
One of EAG’s most valuable assets is its reputation for integrity, professionalism, and fairness. All decisions are taken after careful consideration of all the issues and potential impacts, including financial, operational, and reputational risks.
EAG Main Board has and will retain oversight of EAG’s tax strategy and regularly reviews key developments that may influence EAG’s global tax position. In line with the overall risk appetite of the Group, EAG has a low tax risk appetite. EAG carefully manages the tax risks and costs inherent in every commercial transaction, in the same way as any other cost. To the extent that EAG may undertake any tax planning, it would be to support the commercial needs of EAG and with a clear understanding of the tax consequences of any decisions made.
EAG’s tax strategy is to enhance shareholder value by managing its tax liabilities through the use of legitimate tax exemptions and tax reliefs. Many governments encourage innovation by offering tax incentives to companies that develop new technologies. A large proportion of EAG’s products are developed in the UK, where the UK government offers credits to companies with R&D commitments.
With effect from April 2013, the UK government provided further incentive for companies to invest in the UK with the introduction of the Patent Box tax legislation, which allows companies to apply for a lower rate of corporate income tax on profits earned from patented technologies.
EAG anticipates acquiring compannies that develop technology in other jurisdictions, and those respective governments may also offer tax incentives which EAG would seek to utilize where appropriate.
EAG does not engage in aggressive or artificial tax planning schemes or arrangements that serve no commercial purpose and does not tolerate any activities or behaviours that encourage tax evasion, nor withholding of revenues from government and regulatory authorities.
Tax Risk Appetite: EAG’s risk control framework does not define or quantify the levels of acceptable risk, but EAG has a low appetite for tax risk. As with other risks, tax is managed within the overall risk control framework and risk appetite as determined by the Executive Committee. EAG’s Audit Board provides a documented approach to managing risk in relation to the Group’s tax affairs.
Dealings with Tax Authorities: EAG is committed to paying the correct taxes in each relevant jurisdiction and follows a policy of full disclosure in its dealings with tax authorities worldwide. EAG engages, on a timely basis, with all relevant tax authorities with integrity, transparency, and in a spirit of cooperative compliance.
EAG typically seeks to engage proactively with tax authorities to resolve any uncertainty over the treatment or administration of its tax affairs. The complexity of the tax laws and regulations that relate to EAG’s businesses means that from time-to-time EAG may disagree with tax authorities on the technical interpretation of a particular area of tax law, for example, where there is ambiguity in the law and its intent. Historically, such occasions have been resolved through discussion with the respective tax authority.
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