Welspun UK Ltd Tax Strategy
The Finance Bill 2016 introduced the requirement for certain businesses in the UK to publish their tax strategy as it relates to or affects UK taxation.
This document sets out the strategic tax objectives of Welspun UK Ltd and its UK subsidiaries. Welspun UK Ltd, being a subsidiary of Welspun India Ltd and ultimately a part of the Welspun Group is within the scope of the requirement.
The strategy is publicly available on Welspun UK Ltd.’s website in order to allow external stakeholders to understand the company’s approach to tax. The strategy is compliant with the UK tax strategy publication requirement set out in Part 2 of Schedule 19 FA 2016. Welspun UK Ltd is a responsible taxpayer and strives to maintain this responsible attitude towards tax. This is recognised in its tax strategy, which establishes an approach based on openness and transparency in all aspects of tax reporting and compliance, for both Welspun UK Ltd and its subsidiaries.
Our overall tax strategy is to:
- Meet all legislative requirements and make appropriate tax returns and tax payments
- Maintain a good relationship with HMRC by adhering to all HMRC rules and compliances
- Conduct a tax risk assessment and look to mitigate those risks with senior management buy-in
- Consider the tax impact in major or complex business decisions
- Seek to utilise tax reliefs and incentives where available in compliance with government legislation
- Obtain professional advice where necessary to ensure appropriate tax treatment
- Operate in an environment where we consider tax in the context of our reputation and brand
- Inform and educate employees on basic tax rules and the importance of compliance
Welspun UK Ltd incorporates tax planning as part of its overall business strategy and will consider undertaking a transaction in a way that leads to UK tax efficiencies providing it is aligned with the company’s business strategy and complies with UK tax legislation. The company will not engage in tax efficiencies if the underlying commercial objectives do not support the position, or if the arrangements impact upon the company’s reputation, brand, corporate and social responsibilities, or future working relationships with HMRC.
The company’s risk management is led and directed at board level. There is a code of conduct for all staff and there also is an induction session for all staff at the beginning of employment. The board of directors are responsible for the company’s risk management approach and the board coordinates risk management from a strategic viewpoint. However, the day to day risk management is coordinated and driven by members of the finance team; specifically, the Finance Director and Finance Controller.
Attitude towards risk
Welspun UK Ltd currently has a low tax risk as measured by the HMRC’s Business Risk Review process, and it aims to maintain this low level of risk through the following methods:
- Prompt submission of all UK tax returns with detailed accuracy so that it’s easy for the tax authorities to gain an accurate view of the company’s affairs, aided by a clear signing off process and audit trail
- Paying the appropriate amount of tax in a timely manner
- Ensure all tax filing positions are supported with appropriate documentary evidence
The Board is conscious of the external perception of a group’s attitude towards tax, and sees strong internal processes and a good relationship with our professional advisors as the best way to manage this reputational risk.
Approach towards dealings with the HMRC
Welspun UK Ltd aims to have a strong relationship with HMRC, and plans to build on this already strong relationship by ensuring tax compliances are timely and deadlines for tax filings and payments are met. We will continually seek the advice of our tax consultants to ensure that all legislation is adhered to and nothing is missed out. This way, we can forge a strong relationship with HMRC and ultimately reduce our tax risk.