WAGO’s UK Tax Strategy comprises of 4 key components:
Risk management and governance in respect of UK taxation
At WAGO, we are dedicated to complying with all relevant UK legal and regulatory taxation requirements.
The Financial Controller in the UK is responsible for the day to day tax operations of the UK business and reports directly to the Group Financial Director who is ultimately responsible for the tax policy. As a privately owned group, key strategic decisions, including the overall approach to taxation are made at a group level. Strategic decisions made by the board which could have UK tax implications are discussed with the UK Financial Controller.
Tax governance is supported by robust internal controls i.e. policies and procedures which govern the commercial operations and support the accuracy of our tax compliance.
We source many of our components from our overseas parent company. We ensure that our transfer pricing policy is based on the Organisation for Economic Co-operation and Development’s (‘OECD’) arm’s length principle.
Any tax risks identified in the UK are discussed with our overseas parent company and professional advisors where necessary.
Given the simplicity of the UK operations we consider our UK tax risk to be low.
Our attitude towards tax planning in the context of UK taxation
We seek to ensure that we only undertake tax planning which is driven by economic activity. This means that all tax decisions are made in response to commercial activity and we seek external tax advice where there is complexity or if there is any uncertainty.
We seek to utilise appropriate tax reliefs such as losses and capital allowances. We ensure that when we utilise such reliefs that they are in accordance with the intention of UK tax legislation.
We do not put in place any tax arrangements that are contrived or artificial.
The level of risk we are prepared to accept in relation to UK taxation
We have a low tolerance towards tax risk. Our attitude to tax risk is principally governed by our desire to maintain an open, collaborative relationship with HM Revenue & Customs (HMRC).
Our attitude towards dealing with HMRC
Although we have not been allocated a customer relationship manager within HMRC, we seek to maintain an open and transparent relationship with HMRC and would seek to respond to any requests on a timely basis. We take care to ensure that our tax affairs are reported accurately.