Tax strategy 2023
MEEL, MHL, MEUK, ENERGY BEVERAGES UK LIMITED, Monster Energy UK Holding 1 Company Ltd, Monster Energy UK Holding 2 Company Ltd, Monster Energy UK Financing Company Ltd
This strategy applies to above mentioned companies in accordance with paragraphs 19 of Schedule 19 to the Finance Act 2016. The strategy covers our approach to arranging our UK tax affairs and applies from the date of publication until it is superseded and relates to Income Tax, Corporation Tax, PAYE, NIC, PSA, VAT, Import VAT, Insurance Premium Tax, Vehicle related tax and Stamp Duty Land Tax, Plastic and Sugar Tax.
The Monster UK Group of companies (‘Monster UK’ or ‘Monster’) came within the scope of the Senior Accounting Officer (‘SAO’) legislation for the first time for the period ended 31 December 2022. This was on the basis they collectively breached the £200m revenue threshold for the SAO legislation for the first time in the preceding period; therefore, the 1st SAO certification was made in September 2023 accordingly.
Our Tax Strategy comprises five key components:
- Commitment to compliance
We are committed to compliance with tax law and practice in the UK. Compliance for us means paying the right amount of tax in the right place at the right time. It involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.
- Responsible attitude to arranging our tax affairs
In structuring our commercial activities, we will consider, among other factors, the tax laws of the countries in which we operate, with a view to maximising value on a sustainable basis for our shareholders. For example, we will often look to take steps to reduce the risk of double taxation (i.e. the same income being taxed twice in two different jurisdictions). Any structuring that is undertaken will have commercial and economic substance and will have full regard to the potential impact on our reputation and broader goals. We will not put in place any arrangements that are contrived or artificial. The level of risk we accept in relation to UK taxation is consistent with our objective to achieving certainty in our tax affairs.
- Effective risk management
Given the scale of our business and volume of tax obligations, risks will inevitably arise from time to time in relation to the interpretation of complex tax law and nature of our compliance arrangements. We proactively seek to identify, assess, evaluate, monitor, and manage these risks to ensure they remain in line with our objectives. Where there is significant uncertainty or complexity in relation to a risk, external advice will be sought, particularly in relation to our international tax obligations. We seek to reduce the level of tax risk as far as is reasonably practicable, by ensuring that reasonable care is applied in relation to all processes affecting tax compliance and obligations. The Monster UK Group of companies (‘Monster UK’ or ‘Monster’) has internal policies/processes in place to ensure accuracy and consistency in its reporting, and proactively seeks to keep up to date with the latest tax legislations. SAO compliance is taken seriously, and we maintain and regularly review and update our Tax Risk Register as well as our internal processes and controls associated with it.
- Constructive approach to engaging with HMRC
We engage with HMRC with honesty, integrity, respect and fairness and in a spirit of co-operative compliance. Wherever possible, we do so on a real-time basis, to minimise tax risk. We will not take positions on tax matters that may create reputational risk or jeopardise our good standing with taxing authorities, and we will always strive to resolve any disputed matters through active and transparent discussion. When submitting tax computations and returns to HMRC, the Group discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.
- Board ownership and oversight
This tax policy is aligned with our Ethics Code and is approved and the responsibility of the Board of Directors of the Monster UK Group of companies mentioned above & listed below. Day-to-day management of tax affairs of Monster UK Group of companies are delegated by the SVP Finance EMEA to the VP of Finance in the UK and VP of Finance in Ireland. The VPs of Finance have a team staffed with qualified individuals. The Monster UK Group of companies’ tax affairs are reviewed by our Group Audit Committee and Internal Audit team on a quarterly basis. Within the remit of the Audit Committee’s requirement to monitor the integrity of Monster UK Group of companies financial reporting systems and internal controls is all elements relating to tax.
Published 31st December 2023
1,Monster Energy Europe Limited, 7 Cowley Business Park High Street, Cowley, Uxbridge, England, UB8 2AD
Company Number: 06394100
2, Monster House Limited, 7 Cowley Business Park High Street, Cowley, Uxbridge, England, UB8 2AD
Company Number: 11942833
3, Monster Energy UK Limited; Unit 51 Metropolitan Park, Bristol Road, Greenford, Middlesex, UB6 8UP
Company number: 12902398
4, Energy Beverages UK Limited, Unit 51 Metropolitan Park, Bristol Road, Greenford, Middlesex, UB6 8UP
Company number: 12231953
5, Monster Energy UK Holding 1 Company Ltd; 7 Cowley Business Park High Street, Cowley, Uxbridge, England, UB8 2AD
Company number: 8572123091
6, Monster Energy UK Holding 2 Company Ltd; 7 Cowley Business Park High Street, Cowley, Uxbridge, England, UB8 2AD
Company number: 5484919188
7, Monster Energy UK Financing Company Ltd; 7 Cowley Business Park High Street, Cowley, Uxbridge, England, UB8 2AD