UK Tax Strategy
Nidec Corporation regards the publication of this tax strategy as complying with its duty under paragraph 16(2) of Schedule 19 of the UK Finance Act 2016. As the parent company of a multinational group, we confirm this strategy will apply to the following UK subsidiaries (hereinafter referred to as the "UK Group" or ''Group''):
- •Nidec SR Drives Limited
- •Nidec Control Techniques Limited
- •Control Techniques Dynamics Limited
- •Nidec Industrial Automation UK Limited
- •Drivesshop Limited
- •NIDEC MOBILITY UK Ltd.
Our tax strategy covers all applicable UK taxes, which include corporation tax, VAT, withholding, customs duties, stamp duties, employee taxes and all other appropriate taxes. The taxes we collect and pay contribute to the UK economy. The UK Group complies with all relevant regulations in a responsible manner with respect to the collection and payment of these taxes.
1. Approach of the UK Group to Risk Management and Governance in relation to UK taxation
1.1 Tax Risk Management
The UK Group's consistent approach to tax risk management is based on the core principles of reasonable care and materiality. Risks will inevitably arise from time to time in relation to the interpretation of tax law and nature of our compliance obligations. The Group actively seeks to identify, evaluate, monitor, and manage these risks. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought.
Responsibility for the tax strategy, the supporting governance framework, and management of tax risk for the Group ultimately sits with the Tax Department and is supported primarily by the VP Tax EMEA in the European Tax Department. Day-to-day management of UK tax affairs is undertaken by the UK based Tax Manager. The internal tax function operates in compliance with Nidec Corporate Policies and Procedures and internal control framework, and is subject to review by the Internal Audit Department.
2. Attitude of the Group toward tax planning (as far as affecting UK taxation)
The Group will undertake tax planning as part of our overall business strategy. All tax planning must have a business purpose. The Group does seek to take advantage of tax incentives, reliefs, and exemptions available in accordance with legislation, but does not undertake aggressive tax planning or engage in artificial transactions, the sole purpose of which is to reduce UK tax.
3. Level of risk in relation to UK taxation that the Group is prepared to accept
Where tax law is unclear or subject to interpretation, the Group will only adopt a tax position that is at least more likely than not to be allowed under applicable UK tax laws.
4. Approach of the Group toward dealings with HMRC
The UK Group is proud of its collaborative, open working relationship with HM Revenue & Customs. Where support is required from the authorities, or guidance is sought, it is always on the basis of full disclosure of the facts. A strong relationship has been built over the years, and has continued through changes of personnel and organisational structure. All communications with HMRC are undertaken in an open and transparent way.