UK Tax strategy
This document summarizes the tax strategy of Outotec and all entities belonging to Outotec group (including the entities in the UK).
Fair and non-discriminatory tax policy
Outotec is committed to paying all relevant direct, indirect and other taxes in the countries where Outotec operates; including the UK. Outotec strives for transparency in its operations and bases its decisions on sound business reasons and commercial rationale.
As a globally operating company, Outotec faces a variety of tax laws, regulations, practices and interpretations. International tax environment is sometimes challenging to navigate but Outotec is committed to being a responsible and compliant taxpayer in each country where it operates. Outotec pursues transparency and non-discrimination in its tax practices and does not engage in aggressive tax planning.
In addition to local corporate income taxes, Outotec pays, collects and remits many other taxes and tax-like payments, such as value added and sales taxes, payroll taxes and capital taxes. Outotec’s total tax contribution varies depending on the geographical distribution of sales, which in turn is affected by product mix and locations of customer projects. Outotec promotes open communication with the local tax authorities in its operating countries including HMRC in the UK. Outotec’s tax management has proactive approach in order to avoid surprises in tax matters and unnecessary tax disputes.
Tax risk management and governance
The Chief Financial Officer and the Head of Corporate Tax Management of Outotec Group are key owners of the tax risk management and control together with local management. The general responsibility for the management and operations of Outotec is described in the Corporate Governance principles.
Further, the Code of Conduct of Outotec Group sets out the basic rules for conducting Outotec business. It is accepted by Outotec’s Board of Directors. Outotec proactively manages its tax position and seeks to identify possible tax uncertainties and risks by internal or external tax experts. Further, Outotec may seek external advice to fulfill local compliance requirements and to properly interpret local tax regulations as well as to receive help in communication with the local tax authorities as done in the UK during 2017.
Attitude to tax planning
Outotec pursues transparency in its tax practices and does not engage in aggressive or artificial tax planning. Outotec may enter into tax planning in order to ensure the achievement of strategic and commercial goals of Outotec Group. All decisions relating to the tax planning are based on sound business reasons and commercial rationale as well as applicable tax rules.
Relationship with HMRC and other tax authorities
Outotec’s operations in the UK, and subsequently its dealings with HMRC, have still been in a developing stage during 2017. Outotec seeks to have a transparent and honest relationship with HMRC, and promotes active communication with HMRC, like it does wherever it operates. Outotec seeks to comply with all tax filing, reporting and payment obligations towards HMRC. There is no predefined level of tax risk that Outotec is prepared to accept in the UK.