We continue to develop our presence in new and existing markets and focus on the long term development of Ted Baker as a global lifestyle brand

Tax Strategy

This is the Tax Strategy Statement of Ted Baker Plc (“Ted Baker”) published in accordance with Schedule 19 of The Finance Act 2016. At Ted Baker we believe in being open and honest in the way we do business. We understand the importance of tax compliance and keep under constant review how we meet our tax obligations and manage tax risk.? The Tax Strategy sets out a Group wide approach wherever Ted Baker and its subsidiaries operate.

Ted’s Tax Team is a team of dedicated professionals with appropriate qualifications and experience for their roles. The Tax Team is part of the Group Finance Team and report to the Finance Director. The Finance Director is the Senior Accounting Officer (SAO) and works closely day to day with the Tax Team to implement the Tax Strategy. The Board of Directors understand the importance of tax policies and procedures and the Group’s tax status is reported three times per year to the Audit Committee or more frequently if issues arise which require their input.?The Audit Committee is responsible for monitoring all significant tax matters.?The Tax Strategy will be subject to regular review and will be approved annually by The Board of Directors.

Ted’s Tax Strategy Statement

Business led strategy

The tax strategy is aligned with the wider business strategy and brand values. Ted’s Tax Team proactively partner with all parts of the business to provide clear, relevant and timely advice. We carefully manage any tax risks and tax costs in any business transaction in the same way as we would manage any other risk or cost. Business decisions drive tax decisions and not vice versa.

We do not undertake aggressive tax planning or enter into artificial arrangements in order to obtain a tax advantage. Our attitude towards what is an acceptable level of tax risk follows the same principles that apply to all our business risks and we always seek to comply with all applicable laws and regulations.

Brand Values

Ted is committed to product quality and attention to detail; delivered by the passion, commitment and skill of those working for and with Ted Baker. Our skilled Tax Team reflect these brand values in their work and in how they communicate with all stakeholders. Consideration is given to Ted’s reputation, corporate and social responsibilities in all tax matters along with the applicable legal and fiduciary duties of directors and employees. We understand the importance of not wilfully engaging in tax avoidance schemes which could damage the brand and Ted’s reputation.

Responsibility to pay taxes

We manage the tax cost of doing business within all applicable laws and recognise the responsibility to pay taxes on a timely basis where profits arise.?We seek to utilise tax reliefs and incentives where available in compliance with relevant laws.

Strong governance and compliance

We strive for good governance and timely compliance in relation to all tax payments, returns and other statutory reporting obligations for all taxes and in all jurisdictions. Ted’s Tax Team identify any tax risks and document these in risk registers.?We manage risks through appropriately designed and operated controls. Risk registers are reviewed regularly by the Head of Tax and SAO to ensure the risks are adequately managed and that relevant actions are taken to deal with significant risks arising.

We would typically seek external expert tax advice on uncertain or complex areas of tax or where the Tax Team have insufficient expertise in a particular area. To comply with European Audit Regulation and Directive recommendations on non-audit services provided by external auditors, tax advisory and compliance services are not provided by the Group’s external auditor. Where work is outsourced to external advisers, the Head of Tax is responsible for ensuring that the principles of the Tax Strategy are adhered to.

Co-operation with Tax Authorities

We enter into frequent correspondence and regularly meet with HMRC. We maintain a strong real time working relationship with our Customer Relationship Manager (“CRM”) and Assistant CRM at HMRC and we proactively discuss with them any business developments and tax issues arising.

We recognise the importance of maintaining honest and open working relationships with the Tax Authorities in all the jurisdictions in which we operate.

Board Approval

This statement has been approved by the Board of Directors.
Lindsay Page
Chief Operating Officer, Ted Baker Plc [23 January 2018]