This publication is intended to satisfy the requirements of Schedule 19, Finance Act 2016 and applies to the UK companies and permanent establishments within the AAR group that are within scope of the legislation.

Tax Risk Management and Governance

AAR is committed to complying with applicable tax laws and regulations in the jurisdictions in which it operates, including the UK. AAR maintains consistent tax policies, procedures, and controls designed to support compliance with applicable tax laws in the jurisdictions where it operates. Compliance means paying the appropriate amount of tax, in the appropriate jurisdiction and at the appropriate time, while providing transparent and accurate disclosures to tax authorities and claiming available reliefs and incentives where eligible.

AAR’s Code of Business Conduct sets the standards of integrity and ethical conduct expected of all employees, and AAR’s approach to tax is guided by those same principles.

Attitude Toward Tax Planning

Tax planning is an important element of AAR’s overall business operations. AAR considers tax implications as part of its business decision-making process and may seek advice from external advisers in connection with tax planning, significant transactions, or complex tax matters. Where tax laws are unclear or specialized expertise is required, external advice may be obtained to support informed decision-making.

Level of Tax Risk Accepted

AAR seeks to maintain a low level of tax risk and has established internal controls and procedures designed to support accurate tax reporting and compliance. Given the scale and complexity of its operations, tax risks may arise from changes in legislation, the interpretation of tax laws, business transactions, and other areas.
Where matters involve significant uncertainty or complexity, AAR may seek advice from qualified external advisers.

Approach to Dealing with Tax Authorities

AAR seeks to maintain professional, transparent, and constructive relationships with tax authorities, including HM Revenue & Customs (“HMRC”). AAR strives to make timely and accurate tax filings, provide appropriate disclosures, and engage openly and cooperatively with tax authorities.

Where the application of tax law is uncertain, AAR may engage proactively with tax authorities to obtain clarity. In the event of a disagreement, AAR will seek to resolve the matter through open and constructive dialogue while preserving its rights under applicable law.