CRAIG & ROSE OVERVIEW
Founded in 1829, Craig & Rose Limited (Craig & Rose) is a niche manufacturer and marketer of premium paint products targeted at consumers and trade professionals looking for high-end, historical authentic and contemporary finishes. The ultimate controlling entity of Craig & Rose has historically been an Australian entity that was listed on the Australian stock exchange, DuluxGroup Limited (DuluxGroup). However, effective from 21 August 2019 the shares in DuluxGroup were acquired by Nippon Paint Holding Co Ltd (Nippon Paint), a public company listed on the Japanese stock exchange. The policies and procedures in relation to tax for Craig and Rose align to that of DuluxGroup for the purposes of the income year ended 31 December 2021.
DuluxGroup is a leading marketer and manufacturer of premium branded products that enhance, protect and maintain the places and spaces in which people live and work. DuluxGroup acquired the Craig & Rose business in the United Kingdom on 10 August 2016.
This report complies with the requirement to publish a tax strategy in accordance with Paragraph 16(2) of Schedule 19 of the United Kingdom Finance Act 2016.
TAX STRATEGY AND GOVERNANCE
Approach to risk management and governance arrangements
Craig & Rose’s approach to risk management and governance arrangements are aligned to DuluxGroup’s Tax Risk Management Framework which sets out the policy and procedures for managing tax risk for all entities controlled by DuluxGroup.
The Group Manager – Tax, Risk and Assurance of DuluxGroup is mandated to design, review and update the global tax risk procedures for DuluxGroup and all of its subsidiaries with the formal policy document approved by DuluxGroup’s board at least once every two years. The Group Manager – Tax, Risk and Assurance works with the Craig & Rose Board and senior management to ensure that these risk management and governance principles are consistently applied to the UK business.
DuluxGroup and Craig & Rose directors and management are committed to conducting business in an ethical, fair and transparent manner in accordance with high standards of corporate governance. Managing tax risk is an integral component of good corporate governance.
DuluxGroup have a robust corporate governance framework in place which is applied to all subsidiaries including Craig & Rose and we are committed to fostering a culture of compliance that values personal and corporate integrity, accountability and continuous improvement.
DuluxGroup’s corporate governance framework includes:
- An experienced and engaged Board of Directors and management team;
- Clear and transparent communication with shareholders;
- Strong risk management and assurance processes and culture; and
- The values and behaviours and supporting policies that underpin how DuluxGroup conducts its business.
Attitude towards tax planning
Craig & Rose’s approach to tax planning is aligned with DuluxGroup’s tax philosophy which is to comply with all tax laws and operate at the highest level of integrity at all times. The tax strategy is principled, transparent and sustainable with the following objectives:
- Operate in good faith, with transparency and to comply with tax laws in all jurisdictions;
- Align to the current business strategy;
- Continually look at ways of improving efficiency in the tax compliance and reporting functions; and
- Operate in accordance with DuluxGroup’s tax risk appetite.
Accepted level of risk in relation to tax
In order to meet the expectations of stakeholders and the Board, Craig & Rose and DuluxGroup aspire to maintain a tax risk profile which is low.
Approach to engagement with tax authorities
DuluxGroup aims for a co-operative relationship with every tax and revenue authority including the HMRC. As part of this commitment, DuluxGroup has voluntarily adopted the Australian Tax Transparency Code and as a result they publish an annual Tax Contribution Report in Australia.
From time to time, it is expected that DuluxGroup will be subject to review by the various tax authorities across the jurisdictions it operates in. DuluxGroup endeavours to work collaboratively to achieve early agreement and to resolve any disputes which may arise.