UK Tax Strategy
The global Endress+Hauser Group is a leading supplier of products, solutions and services for industrial process measurement and automation. The Group has an annual turnover of over €2 billion. Still being a family-owned business, the Group is run with strong moral values, clear principles and a commitment to corporate social responsibility, compliance and open communication.
This tax strategy applies to all UK entities within the Endress+Hauser Group (the ‘UK Group’) and it is considered that this publication meets the requirements of the Finance Act 2016 to publish a UK tax strategy.
Level of acceptable risk
The UK operations of the Endress+Hauser Group are relatively small compared to the size of the wider Group, with total annual turnover of around £45m. The principle activities of the UK Group are the design, manufacture, supply, installation and servicing of electronic process control systems and operations.
These activities are considered to present a low level of risk in terms of compliance with UK tax law. The Group looks to maintain a low tax risk profile and does not engage in any practices which it considers to be aggressive or likely to be at risk of challenge by the UK tax authorities. Overall, the UK Group seeks to ensure that it pays the right amount of tax at the right time.
Approach to risk management and governance arrangements
Ultimate responsibility for the UK Group’s tax strategy and related governance structure lies with the Finance Director on behalf of the UK Board of Directors. Responsibility for the day to day management of tax risk and implementation of the strategy, for example in relation to managing annual tax compliance matters, is undertaken by the Finance Director.
As part of the wider Endress+Hauser Group, the UK Group adheres to the Endress+Hauser Group Code of Conduct, which underpins risk management policy. Key to this code is the Group’s commitment to addressing non-compliance in order to protect the Group’s integrity and reputation.
Where appropriate, the Group will consult with professional advisors to identify, manage and reduce its tax risks, for example by using independent, external advisors to assist in the preparation of annual UK tax compliance documents.
All relevant staff have the necessary experience or qualifications and/or received the required training to manage the tax risk associated with their roles.
Attitude towards tax planning
Endress+Hauser believes that profit is the result of good business behaviour and not the target. The Group’s code of conduct emphasises not only transparency and adherence with applicable laws, but identifies this is a minimum standard of normal operation. Accordingly, the UK Group is committed to upholding not only the letter, but the spirit of the law.
The UK Group considers that tax should follow the commercial substance and operation of its business. As such, it does not implement any contrived or artificial tax arrangements or business practices. The UK Group makes use of legal tax incentives and reliefs to the extent that they are available to the business in the ordinary course of its operations.
Approach in dealings with HMRC
Endress+Hauser seeks to uphold an open, professional, and collaborative relationship with HMRC. This includes providing accurate and timely information as required by UK law and HMRC. Where relevant, the UK Group will seek to agree clearance with HMRC in advance of undertaking transactions, particularly where any areas of unclear or uncertain law, or the application of law, is involved.