JVCKENWOOD UK Limited (“JKUK”) is a sales and marketing company responsible for distribution of JVCKENWOOD branded products in the Automotive, Media and Public Services sectors. JKUK operates extensively in the UK but also serves a number of overseas territories.
As a wholly owned subsidiary of the JVCKENWOOD Corporation (“JKC”) in Japan, the Company adopts the corporate direction of its parent company, currently expressed through its Vision 2020 and JK3.0 publications.
► Ownership and approval
This document describes the strategic tax objectives of JKUK.
These objectives are owned and approved by the Board of Directors of JKUK.
This document is published in fulfilment of the obligation under Schedule 19 of the Finance Act 2016 to publish a tax strategy document.
JKUK is a responsible tax-payer. The Company’s tax strategy is based on the principles of openness and transparency with respect to all aspects of its tax reporting and compliance, wherever the Company operates.
The Company takes a consistent approach to risk as governed by the overall strategy of JKC, and its adherence in this regard is closely monitored.
The Company’s tax strategy applies to the compliance, payment and reporting of all taxes borne and collected by JKUK. This applies in all locations where JKUK has a legal footprint.
Training and instruction is made available to all employees whose decisions/actions are impacted by the Company’s tax strategy.
As the tax environment is constantly evolving, the Company’s tax strategy is reviewed regularly by the Directors, with external validation sought as necessary.
► Business strategy
JKUK publishes its business strategy on the company website and follows the overall business strategy of its parent company JKC as published at www.jvckenwood.com.
► Tax strategy statement
JKUK aligns its tax strategy with its business strategy. It is also aligned to Group corporate governance and risk management as set by JKC and published at www.jvckenwood.com. The JKUK tax strategy also conforms with the JKC Group Code of Conduct.
Of primary importance is paying the correct amount of tax at the right time, compliant with all relevant laws and regulations. This is controlled through internal IT systems which are regularly checked and subject to periodic external audit.
The tax implications of external transactions are considered by the Finance Director and finance department members. Options are carefully considered and a commercial approach is taken to all matters. The Company does not undertake aggressive tax planning for the purpose of tax avoidance.
► JKUK engages with tax authorities with openness and transparency.
JKUK aims to be fair and truthful in all matters including in its relationship with tax authorities. This includes being proactive to resolve any disagreements that may arise in a timely fashion.
The aim is a full understanding of the business and regulatory context of transactions.
Professional advice is sought promptly on unclear issues.
JKUK applies a document retention policy to enable the Company to comply with any tax authority audits in a full and timely manner.
► Partner with the business
The Company ensures that all areas of the business understand the need to consider tax issues when making business decisions through communication and training. There are no circumstances where commercial needs would override compliance with tax laws. The tax aspect of commercial decisions are considered by appropriately qualified finance professionals and are monitored throughout implementation to manage tax risk.
► Approach to tax sensitive transactions
Business decisions are not based on gaining tax advantages.
Given alternative routes to a commercial result, any tax efficient routes should comply with relevant laws. Where incentives and reliefs are available to JKUK in the jurisdictions in which it operates, the Company will seek to access these in line with the intention of the law.
The primary objective is to pay the right amount of tax at the right time.
Consideration of JKUK’s reputation, relationship with tax authorities, law and regulation, and corporate responsibility are given the highest priority.
JKUK takes a cautious approach to tax risk.
Regular monitoring of internal systems and external audit are undertaken to ensure control.
TAX MANAGEMENT AND ORGANISATION
► Tax Department
Taxation matters are the responsibility of the Finance Director and a team of appropriately qualified finance professionals.
► Finance and other personnel
All finance personnel of JKUK are responsible for complying with the principles and strategy set out in this document and with wider tax governance requirements.
There is a commitment to provide support to personnel in other departments where their work has tax consequences.
► External advisors
Tax advice may be obtained from external advisors. This includes annual tax return preparation and review, advice on material transactions, and consideration of other matters where appropriate technical expertise does not exist within the Company.
JKC has the final decision on the appointment of external advisors and the implementation of advice sought.
► Approving body
This tax strategy is owned and approved by the Board of Directors of JKUK.