REHAU UK Ltd (and its subsidiary companies) - UK Tax Strategy
Year Ended 31 December 2019
Prepared by: REHAU UK Ltd - Finance Department
Circulation: Internal and External
In accordance with the requirements of Part 2 Schedule 19, Finance Act 2016 in relation to the financial year ended 31 December 2019. This document applies to REHAU UK Ltd and its subsidiary companies in the UK.
Our Tax Principles
Our business is based on our three core values of Trust, Reliability and Innovation and our approach to taxation is based on those same values. We comply with all necessary tax regulations and we aim to keep our tax affairs straightforward and transparent. Securing and maintaining the trust of all our stakeholders, including HMRC, is central to our business. REHAU operates a code of conduct that states we must comply with all legislation. We aim to create long-term sustainable trading growth, and to be a responsible taxpayer.
Tax Governance Framework
- We aim to comply with all applicable tax laws and regulations in the UK and internationally.
- We ensure we have sufficiently qualified and trained staff to handle our taxation matters.
- We operate a robust internal control system.
- To use available tax reliefs only in the way that they are intended.
- We work closely with our internal and external specialist advisors.
- To adopt an open, honest and professional approach in our dealings with HMRC.
Tax Management and Process
We have engaged freely with the HMRC and during 2019, we have commenced two audits, one for PAYE and the other for VAT. At this current time the HMRC have not found any adverse items, the audit is ongoing and due to conclude in 2020. The company is taking guidance on the implementation of ‘Making Tax Digital’ and we will introduce this in January 2020.
The Finance Department works closely with external advisors where appropriate in relation to complex and/or specialist areas of tax where additional expertise and clarification is required. For this, we always utilise the REHAU Group Global Specialist Support and we engage our tax partners BDO to advise us.
For transfer pricing matters we have a global policy in place to ensure prices between related entities are made under arm’s-length considerations and our transfer pricing documentation is based on the OECD principles, including the requirements out of BEPS project.
Approach to Tax Planning
Our approach to tax planning is to ensure that REHAU UK Ltd complies efficiently with all legal requirements and to only make use of tax reliefs in the way in which they are intended. This is consistent with our values and our desire to maintain a low-risk sustainable approach to our tax affairs. Understanding the business operations is the key objective in order to manage our tax risk. This allows the Finance Department to review and analyse the required compliance and tax reporting matters.
Our Relationship with HMRC
Compliance is at the core of our approach to taxation and we adopt an open, cooperative and professional working relationship with HMRC (and with other tax authorities, wherever we operate). Further, should any inadvertent errors be identified, the UK Group would seek to amend these as soon as reasonably possible.
Consequences of withdrawal from the European Union
The company has also investigated and made tentative plans to enable it to react and adapt to any consequences from a potential withdrawal from the European Union.