Nachi Europe GmbH, UK Branch–UK Tax Strategy
This document is to satisfy the requirements under Section 161 and Schedule 19 (2) of the UK Finance Act 2016 that qualifying UK companies must publish details of their Tax Strategy, either on their web-site or in a freely available document. This requirement applies to UK groups even if they are part of a multi-national group. Nachi-Fujikoshi Corp. ('NFC') has the Head Office in Japan and its Europe Subsidiary, Nachi Europe GmbH ('NEG') is located in Germany and NEG's UK Branch ('NEUK') is located in UK.
In the UK, NEUK predominantly trade in cutting tools, robots, hydraulic equipment, and other products produced in Japan and other countries. Its brand is Nachi.
Governance and risk management
In the management of its tax affairs NEUK has identified the following key roles and responsibilities:
- The NFC Chief Financial Officer who is a Director in the head office has ultimate responsibility for the tax affairs of NFC and its group (including NEUK)
- The NEG General Accounts Manager has management responsibility for the tax affairs of NEG (including NEUK)
- The NEUK Accounts Manager has routine responsibility for the tax affairs of NEUK
- Where deemed appropriate professional tax advisors (in-house or external) are engaged to support those with responsibilities above
- The Accounts Manager of NEUK reports to the NEG General Accounts Manager when something arises on current tax issues, or the status of tax return submissions and audits. The Board of NEG takes an involvement in the tax affairs.
Compliance and reporting
The NEUK's overall tax strategy is to ensure that:
- All tax legal requirements including tax compliance and reporting responsibilities are fully met
- All tax processes are documented and key controls identified
- Transactional taxes such as VAT are managed through the functionality of its IT systems
- Where available IT functionality is utilised to manage transactional taxes such as VAT and this is reviewed and tested on a regular basis.
- External tax advisors are engaged to support the management of Corporation Tax, including the submission of returns.
- We respond to questions and inquiries from HMRC in a cooperative, open-minded and transparent manner.
Arranging our taxes
- Tax reliefs and incentives where available are utilised consistent with the aim of the legislation
- Insubstantial transactions only for tax purposes are not conducted
- The transfer pricing is managed based on the arm's length price according to OECD guidelines
- External tax advice is sought where a second opinion is beneficial in explaining a difficult tax issue.