The purpose of the tax strategy is to set out the policy for the management of UK tax for Davall Gears Limited and its UK subsidiaries ("the Group") as required by legislation for UK subsidiaries of multi-national enterprises.
Tax includes all tax liabilities of the Group in the UK. UK tax includes corporation tax, income tax, PAYE, NIC, VAT, insurance premium tax, stamp duty land tax, stamp duty reserve tax, customs & excise duties and withholding taxes.
This tax strategy will be updated annually to reflect any changes to this scope.
The governance of tax
The General Management Team and the directors of the UK companies are responsible for overseeing and approving the Group's tax strategy. Responsibility for the adherence to the tax strategy and the management of risks rests with the Management Team of Davall Gears Limited, other members of Group Finance and professional advisors.
Relationship with the Tax Authorities
The Group will work collaboratively with HMRC in relation to its tax matters. This includes:
- In the event of issues arising, appropriate disclosure (where required by legislation) will be made to HMRC;
- The Group will disclose planning it undertakes to HMRC in line with the legal disclosure requirements and criteria set out by HMRC;
- The Group will continue to cooperate with HMRC in respect of all relevant taxes and duties.
Approach to tax
The Group will endeavour to comply with all UK legal requirements. The Group will operate in a manner that is pays the appropriate amount of tax at the appropriate time.
Where steps are taken to plan the Group's tax position, they are consistent with the Group's strategic objectives and are based on commercial rationale.
In completing the Group's tax compliance and reporting requirements, the Group aims to apply professional care and judgement including ensuring decisions are taken at an appropriate level and, where judgment is involved, it is evidenced by supporting documentation.
The Group and its tax risks
The Group takes a conservative approach to managing tax risk and seeks to achieve compliance through:
- a thorough review of all tax returns to ensure they are correct and possess sufficient detail
- submission of tax returns on a timely basis
- paying our taxes on time
- ensuring local finance teams receive full support, both internally and courtesy of third party advisers
We understand that there are risks in taxation. We seek to understand the complex tax nature of our environment and will consult with our external advisers and, where appropriate, with HMRC where there are areas of concern or clarification is required.