AirTanker is a joint venture which since 2008 has been delivering the Future Strategic Tanker Aircraft (FSTA) contract for the UK Ministry of Defence; as part of the performance of this contract it acquired fourteen Voyager aircraft to provide air to air refuelling, air transport and various ancillary services to the UK MOD. AirTanker is a UK based group whose services are deployed around the work (further details of our services can be found on our website); all AirTanker's activities are subject to UK tax.
The UK Government is a key stakeholder and maintaining trust in how we manage all aspects of our business including our approach to tax is key to our success. AirTanker's tax strategy follows its commercial activity with all applicable tax law being applied to the group's transactions in accordance with precedent and practice; independent tax advice is taken where necessary to assist in achieving this objective.
Tax risk identification and assessment
AirTanker in conjunction with its advisors conducts a process of tax risk identification based on the business activity and transactions undertaken. Having identified transactions which are required to be treated in a particular way for tax purposes, AirTanker ensures the correct treatment is applied through analysis by qualified staff and by taking appropriate external advice where necessary.
Process and controls
Tax processes and controls are established to ensure that the tax sensitive business transactions identified are correctly processed in the relevant returns. These controls include verifications, explanations, reconciliations and review. These processes include input from external advisers who review the work undertaken by internal staff where additional expertise is required and who supplement internal resource by preparing tax returns on behalf of AirTanker.
Information and communication
Management ensures that the necessary information to support accurate tax filings is available and effectively communicated both internally and externally to ensure tax obligations are met.
Ongoing checks are made of financial and tax processes and procedures with assistance from external auditors to ensure that staff are responsible for processing transactions perform their functions correctly and diligently. External advisers also provide oversight and assurance when reviewing tax returns, and as part of periodic updates with them where details are shared of business activity and they provide input on tax law developments.
The financial function reports periodically to the group's audit committee and other internal committees on how tax risks are managed and controlled.
AirTanker; Crown Copyright; Geoffrey Lee, PlaneFocus