WAGO Limited – UK Tax Strategy
This document sets out WAGO’s approach to conducting its UK tax affairs. The tax strategy contained in this document is published in compliance with paragraph 22(2), Schedule 19 of the Finance Act 2016, and relates to the financial year ending 31 December 2017.
WAGO operates in the sale and distribution of connectors, terminal blocks, electronic modules, assemblies and wiring systems. We continue to expand our global network as an independent family-owned and run company. Our vision is to make devices and systems absolutely safe and reliable everywhere in the world, and this is regardless of who the operator is. This is why we are always investing in the development of new products for electrical connection technology and automation.
WAGO takes its social responsibility seriously. We assume social responsibility by considering the consequences of our business decisions and actions from the economic, technical, social and ecological standpoints and we balance our competing interests appropriately. Given our possibilities and freedom to act, we choose to contribute to the common and the long-term development of global society in the locations where we are active. We orient ourselves according to general-valid ethical values and principles, especially integrity and honesty, and respect to humankind. These also form the foundations for our approach to taxation.
We operate policies and governance to ensure compliance with tax laws in the territories in which we do business. We are committed to transparent and constructive relationships with all relevant tax authorities.
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.