Tax Statement

Introduction

Sinclair Pharma Limited (‘Sinclair’) is a global medical aesthetics organisation, that delivers an extensive product range.

Sinclair and its subsidiaries (‘the Group’) are wholly owned by Huadong Medicine Co Limited and conduct business activities throughout the world with operations in the Americas, EMEA and the Asia-Pacific regions. These activities incur varied business taxes, contributing to the revenues of those territories. In all territories where relevant, the Group pays corporate income taxes, indirect taxes, customs duties and excise taxes, stamp duties and employment taxes as well as other varied business taxes.

The Group believes that operating in a reliable, efficient, transparent and ethical manner enhances its ability to foster sustainable growth. Sinclair’s vision, values and beliefs guide every action the Group takes and every decision it makes in the course of its business practices.

In accordance with the requirements of the United Kingdom Finance Act of 2016, this publication outlines the Groups:

• Tax compliance and risk management;
• Approach to tax planning; and
• Interaction and approach to dealing with UK tax authorities.

Tax Compliance and Risk Management

The Group is committed to full compliance with all statutory requirements and full disclosure to HM Revenue and Customs (‘HMRC’).

Ultimate responsibility for the Group’s tax strategy and compliance rests with the Board of Sinclair. Day-to-day management of tax affairs is delegated to the Group Tax Manager who reports to the Head of Finance, who in turn reports directly to the CFO.

The Group engages external tax accountants for the preparation of the UK Corporate Tax Returns and seeks the advice of external experts as necessary.

Approach to tax planning

The Group’s approach is to pay the correct amount of tax and minimise the risk of uncertainty or disputes.

The Group accesses government-sponsored tax incentives where appropriate and in line with its substantive business activities, for example, R&D tax credits.

The Group applies the OECD guidelines, UK and other national legislation as appropriate to its inter-company transactions.

Approach to interacting with Tax Authorities

The Group seeks to develop and maintain professional and transparent relationships with tax authorities, ensuring there is access to relevant information demonstrating the integrity of its tax processes, returns and payments.

The Group procures that its UK directors, officers and employees are committed to fully cooperate with HMRC (and its representatives) in a transparent, collaborative and professional manner and to provide the requisite information to support the accuracy and transparency of all tax affairs of the Group.