MGA Entertainment (UK) Limited – Our approach to UK Taxation

Tax Policy Principles

This document sets out our approach to ensuring our taxation obligations are dealt with in a responsible and low risk manner, ensuring we pay the right amount of tax in accordance with the laws of the United Kingdom. This document and the principles it sets out have been approved by our Board of Directors and shareholders.

These principles have also been communicated to our UK Head of Finance and our Group Head of Tax who handles the day to day tax responsibilities of the company.

UK Tax Risk Management and Procedures

The company completes both direct and indirect tax returns and manages these by a series of internal and external checks.

The book keeping for the company is prepared by an internal accounts department and is overseen by our UK Head of Finance.

The company appoints external firms of Chartered Accountants to assist the company in meeting its tax obligations. These external advisors:

• prepare and submit the company’s annual Corporation Tax Return and computation with input from the company;
• prepare and submit the company’s VAT returns. A review by our UK Head of Finance takes place before submission and payment;
• prepare and submit the company’s PAYE returns. A review by our UK Head of Finance and Human Resources director takes place before submission and payment, and
• advise the UK Head of Finance and Group Head of Tax on ad hoc taxation matters that arise outside of their knowledge or competencies.

All ad hoc taxation work undertaken by our external advisors is checked by our UK Head of Finance, Group Head of Tax and approved by our Chief Executive Officer.

The company’s objective is to have a low tax risk status by ensuring it aims to:

• submit its UK tax returns on a timely basis;
• pay its tax liabilities by their due dates;
• where there is a material uncertainty regarding the tax treatment of a transaction, to fully disclose the view taken by the company in such a way that is transparent and includes sufficient detail to enable HMRC to consider the matter, and
• ensure that our UK Head of Finance and Group Head of Tax is adequately trained and resourced, with assistance requested from our external advisors where necessary.

Attitude to Tax planning

The company has clearly defined lines of responsibility for its tax affairs, with decisions being taken in line with the Group’s tax authority thresholds, ensuring that they are taken at an appropriate level.

The company does not undertake any artificial transactions with the sole purpose of reducing UK tax liabilities.

In cases where the tax guidance is unclear or the Group does not feel it has the necessary expert knowledge to assess the tax consequences adequately, external advice may be sought to support the Group’s decision making process.

Level of risk accepted for UK taxation

A low risk approach is adopted when considering significant transactions. The company will take advice on the tax implications and seek to implement the transaction in a tax efficient way, utilising the tax reliefs and allowances in the manner intended by Parliament.

Working with HM Revenue & Customs

The company works collaboratively with HMRC and acts in an open and honest way. It will comply with all the disclosure obligations required of it by HMRC.

Where there is any uncertainty on a significant transaction the company will consider seeking any available pre-transaction clearances from HMRC. If a dispute on any tax manner were to arise the company will aim to promptly resolve the matter with the agreement of HMRC.

Details of legislation complied with

This document has been published in accordance with paragraph 22(2), Schedule 19 of the Finance Act 2016, and relates to our accounting period ended 31 December 2023.

Dated: December 2023