Toyo Tyre UK Limited - Tax Strategy and Policy
Year ended 31 December 2019
This document sets out Toyo Tyre UK Limited’s strategy and approach to conducting its tax affairs and dealing with tax risks. It has been published for the purposes of paragraph 16(2) of schedule 19 Finance Act 2016 and is in respect of the financial year ending 31st December 2020.
This strategy applies from the date of publication, 18th December 2020, until it is superseded.
The Board of Directors of Toyo Tyre UK own this document. It will be reviewed annually, updated as appropriate and approve by the Board. The tax strategy applies to all UK taxes applicable to the company.
As Toyo Tyre UK Limited is part of a wider listed international group, it has a strong policy of tax compliance, arising from the Group’s strong compliance focus. The Board is responsible for setting and monitoring the strategy. The finance team of the company are accountable to the Board for the implementation of the tax strategy and the management of tax and related risk.
Risk Management and Governance
The day-to-day operation of tax affairs of the company is the responsibility of the finance function and the compliance officer. The finance function is staffed by appropriately qualified and experienced personnel, who are required to update their knowledge through continuing professional development.
Various risk management processes and controls are used by the company to provide assurance that the company’s tax strategy is being met. This includes internal reviews of tax compliance activity and compliance and risk monitoring activity.
We keep under review how we meet our tax obligation, by seeking advice from external advisers when required and by providing regular training for our finance staff involve with the day-to-day operation of the company’s tax affairs.
Attitude towards Tax Planning and Level of acceptable risk
Toyo Tyre UK Limited manages the tax risks and costs inherent in its commercial transactions, in the same way as any other cost. The company does not undertake aggressive tax planning, the sole purpose for which would be obtaining a tax advantage.
Reliance is placed upon external tax advisors where there is need for specialist guidance and support. The company has a strong policy of compliance and is committed to paying the correct amount of tax due under UK legislation.
The Board sees compliance with tax legislation as key to managing our tax risk. At all times the company seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a corporate citizen.
Toyo Tyre UK’s appetite for risk is determined on an activity basis such that risks are taken in a controlled manner within the overall governance framework set by the Board of directors with a generally cautious approach to risk. The company aims to gain certainty in its tax affairs by proactively entering into dialogue with HMRC with regard to issues where the correct treatment is uncertain.
Relationship with HMRC
Toyo Tyre UK Limited seeks to have constructive, professional and transparent relationships with HMRC, based on concepts of integrity, collaboration and mutual trust.
The Company’s aim is to meet all its statutory and legislative tax requirements, and where applicable make HMRC aware of any significant developments and transactions involving the company by disclosing all relevant facts and circumstances when making tax return submissions.
Our communication with HMRC is focussed around timely tax compliance, for example meeting relevant filing and payment deadlines for taxes the company pays. We employ the services of professional tax advisers to act as our agents, and in a number of cases they liaise with HMRC on our behalf. This is seen by the Board as a way to ensure we get the most out of our relationship with HMRC, thus reducing our tax risk.