Tax Strategy

Scope

This strategy applies to Covivio Hotels group and specifically to its UK group of entities in accordance with the requirements of Schedule 19 to the Finance Act 2016. A list of the entities to which it applies is set out below.

In this strategy, references to ‘Covivio Hotels’, ‘the firm’ or ‘the group’ are to all these entities and Covivio Hotels regards this publication as complying with its duty under paragraph 16(2) Schedule 19 FA 2016 in its financial year ended 31/12/2021.

This strategy has been approved by the Board of Covivio Hotels and remains in place until it is superseded; it will be reviewed and republished for future periods.

References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Group has legal responsibilities.

Aim

Covivio Hotels is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The group’s tax affairs are managed in a way which takes into account the group’s wider corporate reputation in line with Covivio Hotels’ overall high standards of governance.

Governance in relation to UK taxation

Ownership for Covivio Hotels’ tax strategy, along with our overall business strategy, sits with our Board of Directors. Covivio Hotels CFO and other directors are regularly briefed on material tax issues, legislative changes and significant disputes. They receive regular updates on material tax risks, disputes and other relevant tax policy developments.

Risk Management

As a Pan-European group, Covivio Hotels has made the respect of local fiscal legislation a priority. In France, Italy, Germany, Covivio Hotels already benefits from integrated fiscal directions working with complex multi-national operations. With guidance from main tax advisor firms in Europe, we always seek to identify, evaluate, monitor and manage these risks to ensure they remain in line with our objectives. We work continuously with our advisors to ensure we deliver an appropriate level of reassurance in relation to its risk potential. The same approach is adopted in the UK.

Attitude towards tax planning and level of risk

Covivio Hotels is a leader of hospitality investment in Europe and will seek appropriate advice to ensure that investments are structured appropriately in light of relevant applicable legal, tax and regulatory considerations. In this regard, Covivio Hotels will engage professional advisers to assist with determining appropriate compliant investment structures. Planning strategy for Covivio Hotels is based on financial principles and on existing tax laws

Relationship with HMRC

Our engagement with all tax authorities is based on the following principles: honesty; integrity; respect; transparency and fairness with our shared goal of cooperative compliance. Wherever possible and practical, we do so proactively in order to minimize risk. We also seek to resolve any disputed matters through open and respectful discussions.

List of entities covered by this Tax Strategy