Tax Strategy

Introduction

With its headquarters located in Glenavy Road Business Park, Moira (Northern Ireland), the farmer-owned Co-operative is now one of Ireland’s most progressive agri-food businesses. Currently, the Group has interests in animal feed manufacturing, farm supplies, the provision of a range of on-farm technical support services, integrated production and processing of premium duck products, pullet rearing, porridge oats & breakfast cereals, manufacturing of beef dripping, and the retail packing of edible offals. The Group has recently invested in egg product production and egg distribution.

Fane Valley is committed to upholding the highest standards of transparency, compliance, and ethical conduct in all aspects of its business operations, including its approach to taxation. The Group contributes to the community in which its businesses operate, in part through the taxes it pays. Below is the strategy for conducting tax affairs and managing tax risk.

The strategy has been approved by the Board of Fane Valley Co-operative Society Limited and will be reviewed annually to ensure alignment with relevant laws, co-operative principles, and stakeholder expectations.

Fane Valley’s Approach to Managing Tax Risks

The Group has a policy of complying with all relevant laws, rules, regulations, reporting, and disclosure requirements, and settling any tax liabilities as and when they become legally due. The Group seeks to ensure that its tax affairs are consistent with its core values at all times.

Tax risk management is a key consideration of the Fane Valley Co-operative Society, with tax matters being proactively managed by the Group. This is achieved through a clear internal governance framework, robust business controls and processes, and input from external professional tax advisers.

The Group Finance Officer has overall responsibility for the management of the Group’s tax affairs and has been appointed as the Senior Accounting Officer. The Group Finance Officer is supported by the Finance Directors, Financial Controllers, and various Accountants across the Group.

Where there is uncertainty over the tax treatment in any aspect of the business, advice is obtained from external professional tax advisers. The Group’s annual corporation tax computations and returns are also prepared by external professional tax advisers and checked for accuracy and completeness by the Group Finance Officer prior to submission to HMRC. The Group ensures that all computations and returns are submitted within the relevant statutory deadlines.

The Chair of the Audit Committee is consulted in respect of tax-related matters when required, and the Audit Committee reviews the tax affairs of the Group on a periodic basis. Any significant tax issues arising during the year are brought to the attention of the Audit Committee and resolved separately.

Fane Valley’s Attitude to Tax Planning and the Level of Acceptable Risk

The Group uses external professional advisers to provide guidance on tax policy changes or tax planning. The Group engages in responsible tax planning that supports business operations and ensures the long-term sustainability of the Co-operative. Ultimately, the Board, in conjunction with advice received, takes responsibility for the Group’s tax planning initiatives.

Fane Valley’s Relationship with HMRC

The Group engages with HMRC openly and constructively, based on mutual trust and co-operative compliance. This approach ensures that the correct amount of tax is paid at the right time, maintaining a good working relationship with HMRC. Where appropriate and possible, the Group endeavours to engage with HMRC on a real-time basis in any areas of material uncertainty, minimising tax risk and providing greater certainty for both parties in advance of formal tax filings.

This statement is issued in relation to the financial year ending September 2024. It was approved by the Board on December 18, 2024.