Wacker Chemicals Limited - UK Tax Strategy
Overview
This UK tax strategy applies to Wacker Chemicals Limited, a limited company registered in England and Wales, wholly owned by Wacker Chemie AG. The publication of this strategy is regarded as satisfying the statutory obligation under paragraphs 19 and 22, Schedule 19 of the UK Finance Act 2016.
The overall goal of Wacker Chemicals Limited’s tax policy is to support its business by maintain-ing a sustainable tax rate while complying with tax law and regulations and mitigating tax risks in the UK.
The tax strategy is approved by the managing board of Wacker Chemicals Limited and will be reviewed on an annual basis. The last review was on 25 October 2022.
Governance and Tax Risk Management
Wacker Chemicals Limited’s tax arrangements are based on its commercial busi-ness activities. In structuring our business activities, we consider tax law and guidelines. We apply the arm’s length standard, Organisation for Economic Co-operation and Development (OECD) and local country requirements to ensure our intercompany arrangements result in appropriate remuneration.
The management of Wacker Chemicals Limited is responsible for ensuring that all applicable regulations as well as internal guidelines and governance procedures relating to taxation are observed. This enables Wacker Chemicals Limited to use diligent care and judgement, including ensuring decisions are made on an appro-priate level and supported by proper documentation and facts.
Potential tax risks are assessed, and processes and controls are implemented to mitigate the risks to an acceptable low level. Internal control procedures and processes are subject to regular reviews and self-assessment programs.
Advice is sought from external advisers where appropriate.
Tax Planning
Wacker Chemicals Limited undertakes tax planning that aligns with our commer-cial business activities and reputation as a responsible corporate citizen.
Wacker Chemicals Limited seeks to utilise tax incentives, tax credits, and related tax favourable deductions where applicable as well as relevant bilateral tax trea-ties aimed at avoiding double taxation. However, Wacker Chemicals Limited does not undertake aggressive tax planning, the sole purpose for which would be obtain-ing a tax advantage.
Wacker Chemicals Limited strives to ensure that any structure or transactions will support the business strategy and as such all decisions will have a sound commer-cial rationale, will be compliant with tax laws and regulations and will be consid-ered in light of any impact such planning could have on Wacker Chemical Limited’s external reputation.
Relationship with HM Revenue & Customs
Wacker Chemicals Limited is committed to the principles of being open and trans-parent with UK tax authorities by being committed to maintaining communication with HMRC in an effort to mitigate disputes and risks. This enables Wacker Chem-icals Limited to ensure that the Tax Authorities are kept aware of significant transactions and changes in the business and seek to discuss any tax issues arising at an early stage.
When submitting tax computations and returns, Wacker Chemicals Limited disclos-es all relevant facts as required and identifies any transactions or issues where it considers that there is a potential for the tax treatment to be uncertain.
Wacker Chemicals Limited makes the necessary corrections of material errors or misstatements in tax filings where permissible and/or required by law and practice without undue delay. Any inadvertent errors in submissions made to Tax Authori-ties are fully disclosed as soon as reasonably practicable after they are identified.