This strategy applies to Seiko UK Limited in accordance with paragraph 22 of Schedule 19 to the Finance Act 2016. In this strategy, references to ‘Seiko’ or ‘the company’ are to this entity. The strategy has been published in accordance with paragraph 22(4) of the Schedule.
This strategy applies from the date of publication until it is superseded. References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the company has legal responsibilities.
Seiko’s core values include focusing on accountability and excellence in everything the company does. The company is committed to acting ethically and for all its employees to take responsibility for their actions.
In line with these values, Seiko is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The company’s tax affairs are managed in a way which takes into account the company’s wider corporate reputation in line with Seiko’s overall high standards of governance.
Governance in relation to UK taxation
- Ultimate responsibility for Seiko’s tax strategy and compliance rests with the Board of Seiko;
- The Managing Director (‘MD’) is the Board member with executive responsibility for tax matters, supported by the Finance, Tax and Compliance Manager;
- Day-to-day management of Seiko’s tax affairs is delegated to the Finance, Tax and Compliance Manager;
- The finance team is staffed with appropriately trained and qualified individuals;
- The Board ensures that Seiko’s tax strategy is one of the factors considered in all investments and significant business decisions taken.
- Seiko operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the company’s financial reporting system;
- Seiko seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations;
- Processes relating to different taxes are allocated to appropriate process owners, who carry out a review of activities and processes to identify key risks and mitigating controls in place. These key risks are monitored for business and legislative changes which may impact them and changes to processes or controls are made when required;
- Appropriate training is carried out for staff who manage or process matters which have tax implications;
- Advice is sought from external advisers where appropriate.
Attitude towards tax planning and level of risk
Seiko manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.
When entering into commercial transactions, Seiko seeks to take advantage of available tax incentives, reliefs and exemptions in line with, and in the spirit of, tax legislation. Seiko does not undertake tax planning unrelated to such commercial transactions.
The level of risk which Seiko accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the company’s tax affairs. At all times Seiko seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.
Relationship with HMRC
Seiko ensures that HMRC is kept aware of significant transactions and changes in the business and seeks to discuss any tax issues arising at an early stage. The company pro-actively contacts HMRC directly to discuss minor tax queries. If any significant queries arise the company will undertake its own assessment, consult with external advisors and then contact HMRC if uncertainty still exists.
When submitting tax computations and returns to HMRC, Seiko discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.
Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.
Date published: 29/3/2018