UK Tax Strategy

Introduction

This document presents the UK Tax Strategy for BDT & MSD Holdings, L.P. and its subsidiaries (collectively referred to as “BDT & MSD”). BDT & MSD is a merchant bank with an advisory and investment platform built to serve the distinct needs of business owners and strategic, long-term investors. This document is prepared in compliance with Schedule 19 of the Finance Act 2016. This strategy is applicable to all UK entities within the BDT & MSD consolidated financial statements and underscores BDT & MSD’s unwavering commitment to ethical tax practices and full compliance with relevant regulations and laws.

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Governance Arrangements

BDT & MSD maintains an in-house tax department staffed by professionals with diverse backgrounds and a range of accreditations, all under the supervision of the Chief Financial Officer (CFO). This department manages day-to-day tax operations, while the CFO provides ultimate executive oversight.

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The tax department is responsible for overseeing tax filings, managing relationships with tax authorities and vendors, and addressing various other tax-related matters. The department works closely with the in-house legal, compliance, and finance departments of BDT & MSD. Controls are in place to ensure our tax policies are current and accurate. Adherence to BDT & MSD’s Code of Ethics ensures the tax department operates with the highest standards of moral and ethical conduct, strictly following applicable laws and regulations. The UK Tax Strategy is reviewed annually and updated accordingly for any shift in legislation or other tax matters. 

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Tax Planning and Risk Management on UK Taxation

BDT & MSD engages in efficient tax structuring but strictly refrains from participating in tax evasion or avoidance schemes. In situations where tax laws may be ambiguous, BDT & MSD consults with reputable external professional firms to ensure compliance. The reputation of BDT & MSD is of paramount importance, and all tax planning activities are based on genuine commercial activities, conducted with careful consideration. 

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BDT & MSD maintains a zero-tolerance policy towards any form of tax evasion or avoidance by the company, its employees, or affiliates. Our organization has a low tolerance for regulatory or tax risk, a stance established by senior management, recognizing the potential consequences a regulatory failure could have on the company. 

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Engagement with HMRC

BDT & MSD provides comprehensive and accurate tax information to HMRC. BDT & MSD aims to resolve any uncertainties collaboratively and are committed to maintaining transparency, accuracy, and timely communication with HMRC. Our approach ensures that any issues are addressed promptly and effectively, reinforcing our commitment to ethical practices and compliance.