LINTEC EUROPE (UK) LIMITED tax strategy
LINTEC implements corporate social responsibility (CSR) based management to further develop as a company that is highly regarded and trusted by all of its stakeholders.
We are conducting CSR activities throughout the Company centered on the CSR Management Office, which reports directly to the president, and its five subcommittees, which consist of members from all areas of the Company. We are advancing several initiatives to ensure strict compliance while also promoting eco-friendly manufacturing, improving customer satisfaction, contributing to local communities and the greater society, supporting Great East Japan Earthquake reconstruction, and making other contributions to creating a better society.
Introduction to the tax strategy
The operations of LINTEC EUROPE (UK) LIMITED (“LEUK”) are relatively small, and straightforward in nature. LEUK’s principal activity is processing and sales of label materials for printing, wide format graphic media, etc., throughout Europe. LEUK is a wholly owned subsidiary of Lintec Europe B.V., and LINTEC Corporation (“LTC”) is regarded as the ultimate parent company and head of the group (the “Group”).
As expressed by the Lintec Group’s motto “Sincerity and Creativity”, corporate ethics and compliance are themes of paramount importance in business. The Group regards the basics of corporate governance to be the practice of thoroughgoing compliance, maximum management transparency, awareness of corporate ethics, rapid-decision making, and efficient administration of business operations. Our overall vision for tax is to uphold our ethical standards and manage taxes with transparency and in a compliant way, ensuring we fulfil our legal and regulatory obligations. By abiding by this vision, Lintec Group aims to increase its corporate value by continually improving its corporate governance and common benefit to shareholders.
The tax strategy and objectives set out below build upon our ethical standards which determine the way we conduct ourselves in our daily operations.
Tax Strategy statement
Approach to tax risk management and governance: The effective management of tax risk ensures that we comply with all relevant tax laws and regulations, and operate in accordance with our ethical standards. All directors and employees at the Lintec Group are committed to disciplining themselves based on the corporate motto of “Sincerity and Creativity”. In order to communicate and impregnate such ethical standards, LTC issues a code of conduct booklet, “Compliance Guidelines”, to enhance employees’ compliance awareness, and occasional study group sessions are held in Europe by LTC’s CSR Committees. Governance, including tax, is considered a high priority for management, and independent external tax advisers have been appointed to ensure compliance with tax regulations and timely filing through the application of diligent professional care and judgement. Tax issues are periodically communicated to other business divisions, in order to communicate tax issues that may have effect on business operations, as well as identify and capture any latent tax risks. Any irregular or material issues are escalated as appropriate to our Head Office Tax Team in Japan for consultation, and earnings levels are monitored on a regular basis by Head Office Tax Team.
Attitude towards tax planning: LEUK is committed to conduct fair and transparent transactions based on the principle of free competition with all business partners and comply with regulations in all aspects of corporate activities, and conduct ourselves based on the highest ethical standards. Thus, all business transactions are undertaken in accordance with our ethical standards and LEUK’s business objectives, with the primary focus to comply with all applicable laws and ordinances. We make use of legislated tax incentives and exemptions approved by external advisers to support the long-term development of our company, but do not participate in any aggressive tax planning, or transactions which do not have a commercial purpose as their primary driver. Furthermore, in line with our ethical standards, we are committed to acting in line with both the letter and spirit of the law.
Level of risk in relation to taxation that we are prepared to accept: In relation to our UK tax affairs, LEUK’s appetite for tax risk is low and we only structure our affairs based on sound commercial principles and in accordance to our ethical standards and relevant tax legislation. Aggressive tax planning is not proactively considered and we do not engage in any operations that would compromise our ethical standards, business objectives, LEUK’s reputation and the reputation of our wider stakeholders.
Approach towards dealings with HMRC: We seek to maintain an open and transparent relationship with HMRC based upon open communication, fair negotiations, and timely completion of its reporting obligations and payment of any taxes due. In situations where tax law is unclear, we will seek relevant advice from independent external tax advisers, and discuss any issues upfront with HMRC. Should any disputes arise, we will maintain our honest and constructive manner with a view to achieving early agreement and resolution.
Our published UK tax strategy, satisfies Schedule 19 of the UK Finance Act 2016, in respect of our financial year ending December 2017.