CPKUK and Miller UK Tax strategy for the Fiscal Year Ending 31 December 2020

This document outlines CPKUK’s and Miller UK’s tax policy and approach to conducting their UK tax affairs and dealing with UK tax risk in compliance with 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 and Miller UK reported tax liabilities is maintained and their tax obligations are in compliance at all times.

CPKUK and Miller UK Tax Policy

CPKUK and Miller UK are committed to conduct their 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 and Miller UK will use available tax incentives, relief programs, and exemptions to maintain their tax liabilities as allowed by UK tax laws and regulations.

CPKUK and Miller UK Tax Governance and Risk Management

The main functions of CPKUK are related to distribution activities for chemical products covering the UK market for related manufacturing companies.

The main functions of Miller UK are related to sales activities for fertilizers and pesticides covering UK and European markets.

CPK UK employs 10-14 people, all located in the UK. The finance and direct tax compliance functions are conducted by centralized finance teams located in Denmark and the US.

Miller UK employs 1 person located in the UK. The finance and direct compliance functions are conducted by an accounting and tax firm located in the UK.

UK Taxation Acceptable Level of Risk

CPKUK and Miller UK accept a level of risk that conforms to their overall objective of achieving certainty in their 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 and Miller UK’s reported financial results and tax returns.

Tax Planning for UK Taxation

CPKUK and Miller UK meet taxation obligations in the UK:

  • In commercial transactions, CPKUK and Miller UK utilize available tax incentives, relief programs and exemptions in line with the terms outlined in the tax laws.
  • CPKUK and Miller UK do not undertake any aggressive tax planning initiatives related or unrelated to any commercial transactions.

Approach Towards Dealings with HMRC

CPKUK and Miller UK seek to have a transparent and constructive relationship with HMRC:

  • CPKUK and Miller UK discuss 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.

Tax Contribution

The main taxes paid to the UK government were as follows:

  • VAT
  • Corporation income taxes
  • Employment taxes

October 21, 2020