This document outlines CPKUK’s tax policy and approach to conducting its UK tax affairs and dealing with UK tax risk in compliance with the Schedule 19 of Finance Act 2016. The tax team will periodically review this document, working together with business partners, to ensure that:
- Business conduct is performed in compliance with the UK tax laws and regulations.
- The integrity of CPKUK reported tax liabilities is maintained and its tax obligations are in compliance at all times.
CPKUK is committed to conduct its tax matters in accordance with the following principles:
- To comply with tax laws, reporting, and disclosure requirements in the UK.
- To make certain the tax strategy is conducted with the highest integrity.
- To apply attentiveness and carefulness in the management of tax matters to ensure that the tax matters and governance procedures are appropriately followed.
- CPKUK will use available tax incentives, relief programs, and exemptions to maintain its tax liabilities as allowed by UK tax laws and regulations.
The main functions of CPKUK are related to distribution activities for chemical products covering the UK market for related manufacturing companies. In addition, CPKUK acts as an importer of record for related manufacturing companies located outside the UK to support the related manufacturing companies European operations using a third-party warehouse in the Netherlands leased by CPKUK. The company employs 17-20 people, all located in the UK. The finance and direct tax compliance functions are conducted by a centralized finance teams located in Denmark and the US.
CPKUK accepts a level of risk that conforms to its overall objective of achieving certainty in its tax affairs.
The following elements are considered during tax risk reviews:
- The legal and fiduciary duties of directors and employees.
- The tax charges, tax benefits, and the impact on CPKUK’s reported financial results and tax returns.
CPKUK meets taxation obligations in the UK:
- In commercial transactions, CPKUK utilizes available tax incentives, relief programs and exemptions in line with the terms outlined in the tax laws.
- CPKUK does not undertake any aggressive tax planning initiatives related or unrelated to any commercial transactions.
CPKUK seeks to have a transparent and constructive relationship with HMRC:
- CPKUK discusses significant tax issues with HMRC as they arise.
- Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practical once they have been identified.
The main taxes paid to the UK government were as follows:
- Corporation income taxes
- Employment taxes
December 12, 2018