Policy overview

Lidl Northern Ireland Ltd (following “Lidl”) operates supermarkets in Northern Ireland, with the

mission of providing quality food at market leading value and ensuring customer satisfaction is at the

heart of everything we do.

Lidl observes and maintains the highest levels of corporate governance and implements control

frameworks to ensure compliance with its obligations within the global community. This includes

properly accounting for taxes and paying the right amounts according to tax legislation in force.

Business leaders are supported by tax professionals to ensure that tax outcomes of business decisions

are properly understood.

1. Tax Planning

Lidl has responsibility for corporate, indirect, income and employment taxes in the Northern Ireland.

Lidl engages in efficient tax planning that supports our business and reflects commercial and economic

activity, will make use of available incentives and reliefs to reduce the tax cost of business, and will

arrange its business affairs accordingly.

However, Lidl will not knowingly make use of reliefs or incentives in a manner contrary to that

intended by legislation, nor enter into artificial business arrangements whose purpose is solely for tax

advantage.

Lidl will not tolerate tax evasion corporately, by any of its employees, or by any of its business

associates. In accordance with Lidl’s written procedures, employees caught engaging in tax evasion

will undergo disciplinary procedures up to and including dismissal.

2. Relationship with the government

Lidl believes its obligation is to pay the taxes legally due in accordance with UK and Northern Ireland

tax law as set by the UK Government and devolved Northern Irish Executive.

Lidl’s tax affairs are a private matter between Lidl and HMRC. However, Lidl will not enter into tax

arrangements which would not be fully justifiable should they become public.

Lidl actively seeks a professional, constructive and transparent relationship with HMRC and its

representatives based on mutual respect and trust. Lidl will not deliberately conceal or knowingly

misrepresent issues to HMRC. If errors are discovered they are disclosed.

3. Transparency

Lidl supports the principle behind multilateral moves towards greater transparency that increases the

understanding of tax systems and build public trust.

4. Risk Management And Governance

Lidl’s core business comprises the sale of purchased goods from its portfolio of stores. Its key tax

business risks therefore lie in the purchase and sale of goods, remuneration of people, and real

estate. Lidl has a very low risk appetite in relation to tax matters.

Responsibility and accountability for Lidl’s tax affairs is clearly defined in accordance with a

Responsibility Matrix. This includes periodic reporting by Tax and Finance leaders within the business

to the Northern Ireland Board of Directors which is ultimately responsible for Governance and

Oversight of tax matters.

Lidl manages its obligations in relation to all taxes as part of its overall business. Each is addressed

within an overall control framework which includes

• close working between tax professionals and the business including property

professionals, buyers and accounting teams;

• automation where possible;

• monitoring and reporting;

• internal audit reviews of tax compliance activity;

• consultation with outside advisers and HMRC where appropriate and necessary.

Lidl will address Tax risks in the same way as other business risks: with diligent professional care and

judgement to arrive at well-reasoned conclusions on how identified risks should be managed.

Where there is risk arising from uncertainty of tax law application or interpretation, Lidl will seek

appropriate written advice from third party advisers to support the decision-making process, and

consult with HMRC where appropriate.

In evaluating risk associated with the tax outcome of a particular transaction or decision Lidl will take

account of

• legal and fiduciary duties of directors and employees

• Group Core Values and policies

• Lidl’s place in the community and the maintenance of corporate reputation,

• accounting standards and reported results

• the wider consequences of potential disagreement with tax authorities, and any possible

impact on relationships with them.

Further information

The Tax Policy Statement will be reviewed and updated annually.

It was last approved on 3rd February 2023.

You can email the Lidl Tax team at tax@lidl.ie.