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Tax Strategy

Introduction

This document, approved by the Board of Nippon Paint Automotive UK (NPAUK), sets out NPAUK’s policy and approach to conducting its tax affairs and dealing with tax risk, and is made available to all NPAUK’s stakeholders.  The document will be periodically reviewed, and any amendments will be approved by the Board of Directors.  It is effective for the year ending 31 December 2020, and will remain in effect until any amendments are approved by the Board.

NPAUK ensure that:

  • The strategy is adopted and followed consistently across the Group
  • There is alignment of the strategy with NPAUK’s overall approach to corporate governance and risk management, and
  • NPAUK pays the right amount of tax required of it under the laws and regulations of the countries in which it operates.

Group Tax Policy

NPAUK is committed to conduct its tax affairs consistent with the following objectives, to:

  • Comply with all relevant laws, rules, regulations, and reporting and disclosure requirements wherever we operate
  • Ensure the tax strategy is at all times consistent with the Group’s overall strategy, its approach to risk and the Group’s core values
  • Apply professional diligence and care in the management of all risks associated with tax matters, and ensure governance and assurance procedures are appropriate
  • Foster constructive, professional and transparent relationships with tax authorities, based on the concepts of integrity, collaboration and mutual trust.

Group Tax Code of Conduct

This Group Tax Code of Conduct (CoC) outlines the principles setting out how NPAUK employees are expected to operate with respect to tax matters in support of the above Group Tax Policy.  Non-adherence to this CoC could constitute a disciplinary matter.  The Group Tax Coc is set out in detail below.

  1. Compliance with laws, rules and regulations.

NPAUK is committed to observing all applicable laws, rules, regulations, and reporting and disclosure requirements, wherever there is a requirement to do so as a result of our business presence and transactions.

 

  1. Consistency with Group strategy

Tax decisions will be made at all times in a manner which is consistent with and complements the Group’s overall strategy.  Key business decisions should be made cognisant of the tax consequences and with the aim of optimising the after-tax returns for the Group’s shareholders.

 

  1. Governance, Assurance and Tax Risk Management

Responsibility and accountability for the Group’s tax affairs is the ultimate responsibility of the Finance Director.  To support the Finance Department in ensuring correct interpretation of tax law and its spirit, advice is sought from large accounting firms, legal firms and / or tax counsel as appropriate.

Relationship with Tax Authorities

NPAUK is committed to the principles of openness and transparency in its approach to dealing with tax authorities wherever we operate around the world.  All dealings with the tax authorities and other relevant bodies will be conducted in a collaborative, courteous and timely manner.  The aim would be to strive for early agreement on disputed matters, and to achieve certainty wherever possible.