COVETRUS UK TAX STRATEGY
This strategy applies to UK Companies ultimately headed by Covetrus, Inc. in accordance with paragraphs 16, 19 and 22 of Schedule 19 (“the schedule”) to the Finance Act 2016. A list of the entities to which this strategy applies is set out below:
Scope
This strategy applies to UK companies ultimately headed by Covetrus, Inc. (“Covetrus”) in accordance with paragraphs 19 (2), Schedule 19, UK Finance Act 2016 (“the schedule”). A list of the entities to which this strategy applies is set out below.
- Covetrus Animal Health Holdings Limited
- Victory Alpha Limited
- Animal Healthcare Services Limited
- Kruuse UK Limited
- Veterinary Solutions Limited
- AH UK Animal Health (Pvt) Limited
- RxWorks Limited
- Covetrus Finance Holding, Limited
- Covetrus Animal Health Finance Limited
In this strategy, reference to “the UK Group” includes all of the above listed entities, and reference to “UK tax” includes Corporation Tax, Employee and Employers’ Taxes and National Insurance Contributions, Value Added Tax and Custom Duties.
The strategy has been published in accordance with paragraph 19 (2) of the schedule and is included on the UK website www.covetrus.co.uk.
This strategy applies from the date of publication until it is superseded.
Introduction
Covetrus was formed by a merger of the complementary activities of the Animal Health business of Henry Schein Inc. and Vets First Choice and listed separately on Nasdaq in February 2019. In October 2022, Clayton, Dubilier & Rice and TPG Capital (collectively referred to as the “sponsors”) completed the acquisition of Covetrus. As a result of the transaction, Covetrus. is now a private company, and its stock is no longer publicly listed or traded on NASDAQ.
Covetrus is a global animal-health technology and services company dedicated to empowering veterinary practice partners to drive improved health and financial outcomes. We’re bringing together products, services, and technology into a single platform that connects our customers to the solutions and insights they need to work best. Our passion for the well-being of animals and those who care for them drives us to advance the world of veterinary medicine. Covetrus is dedicated to advancing the world of veterinary medicine and empowering veterinary healthcare teams across the companion, equine, and large-animal health markets.
Tax risk management and governance arrangements in relation to UK taxation
The ultimate responsibility for our tax strategy rests with the Vice President, Global Head of Tax. In carrying out governance policy, the Vice President of Global Tax escalates tax risk matters to executive management, (i.e., the Covetrus Board of Directors when the company was public and to the company sponsors after the company was taken private) and the UK Directors, as appropriate. Day-to-day management and responsibility of UK tax as it affects the UK Group is delegated to a US based Director and Senior Tax Manager who report to the Vice President, Global Head of Tax.
The UK Group operates in accordance with all applicable UK tax laws, rules, regulations and reporting and disclosure requirements so that the UK Group pays the correct amount of tax and files and discloses information to the UK tax authority in line with the law.
In cases where the tax guidance is unclear or the UK Group does not feel it has the necessary knowledge to assess the tax consequences adequately, external advice may be sought to support the decision-making process.
Attitude towards tax planning (so far as affecting UK taxation)
It is the UK Group’s policy to seek to achieve our commitment of enhancing shareholder economic value whilst complying with all tax rules and regulations in the UK and to ensure tax planning is aligned with commercial activities.
The UK Group does not engage in tax planning strategies in which the business objectives do not support the position, i.e., the UK Group will not undertake planning that is contrived or artificial. The UK Group additionally considers the potential impact on the Group’s reputation, brand, corporate and social responsibilities for all tax planning.
The level of risk in relation to UK taxation that the group is prepared to accept
Due to the UK Group being part of a broader group with activities throughout the world, and the continuously changing tax landscape, risks will inevitably arise from time to time in relation to the interpretation of tax law and nature of our compliance arrangements. We proactively seek to identify, evaluate, manage, and monitor these risks, with the objective of minimizing UK tax risk.
The UK Group monitors proposed changes in UK tax legislation to identify its potential impact on the UK business. In uncertain or complex situations, the UK Group will seek guidance from external tax advisors or engage with the UK tax authority.
The approach of the group towards its dealings with His Majesty’s Revenue and Customs (“HMRC”)
The UK Group is committed to developing and maintaining an open and transparent relationship with HMRC, conduct all dealings in a cooperative, courteous, and timely manner and making fair, timely and accurate disclosure in correspondence and tax returns.
Published on [Insert Date Published] December 2023
Period ended 31st December 2023