The publication of this tax strategy complies with its duty under paragraph 19 of Schedule 19 of the Finance Act 2016 in respect of the financial year ended 31 December 2019.
This document, approved by the Board of Nippon Paint (Europe) Ltd (NPE), sets out NPE Group’s policy and approach to conducting its tax affairs and dealing with tax risk, and is made available to all NPE’s stakeholders.
NPE ensure that:
- The strategy is adopted and followed consistently across the NPE Group
- There is alignment of the strategy with NPE’s overall approach to corporate governance and risk management, and
- NPE pays the right amount of tax required of it under the laws and regulations of the
- countries in which it operates.
NPE Tax Planning and Strategy
NPE is committed to follow the NPHD Group Tax Policy and to conduct its tax affairs consistent with the following objectives, to:
- Comply with all relevant laws, rules, regulations, and reporting and disclosure requirements wherever we operate
- Ensure the tax strategy is at all times consistent with the NPHD Group’s overall strategy, its approach to risk and the NPHD Group’s core values
- Apply professional diligence and care in the management of all risks associated with tax matters, and ensure governance and assurance procedures are appropriate
- Foster constructive, professional and transparent relationships with tax authorities, based on the concepts of integrity, collaboration and mutual trust.
NPE and Its Subsidiaries Group Tax Code of Conduct
This NPE and Its Subsidiaries Group Tax Code of Conduct (CoC) outlines the principles setting out how NPE and its subsidiaries employees are expected to operate with respect to tax matters in support of the above NPHD Group Tax Policy. Non-adherence to this CoC could constitute a disciplinary matter. The Coc is set out in detail below.
- Compliance with laws, rules and regulations.
NPE is committed to observing all applicable laws, rules, regulations, and reporting and disclosure requirements, wherever there is a requirement to do so as a result of our business presence and transactions.
- Consistency with NPE Group strategy
Tax decisions will be made at all times in a manner which is consistent with and complements the NPE Group’s overall strategy. Key business decisions should be made cognisant of the tax consequences and with the aim of optimising the after-tax returns for the NPE Group’s shareholders.
- Governance, Assurance and Tax Risk Management
Responsibility and accountability for the NPE Group’s tax affairs is the ultimate responsibility of the Finance Director. To support the Finance Department in ensuring correct interpretation of tax law and its spirit, advice is sought from large accounting firms, legal firms and / or tax counsel as appropriate.
The approach to tax risk in the UK is in line with the group approach to tax, and takes a conservative approach to tax planning and tax risk, and strives to keep tax risk at a low level
Relationship with Tax Authorities
NPE is committed to the principles of openness and transparency in its approach to dealing with tax authorities wherever we operate around the world. All dealings with the tax authorities and other relevant bodies will be conducted in a collaborative, courteous and timely manner. The aim would be to strive for early agreement on disputed matters, and to achieve certainty wherever possible.