Tosoh America, Inc. (TSAM) and its subsidiaries are committed to acting with integrity and transparency in all tax matters. TSAM’s tax strategy and policies require compliance with all global tax laws.
Compliance: TSAM files and pays timely and accurately all tax returns that reflect the legal obligations to the various Government agencies worldwide. TSAM aims for certainty on the tax positions that are adopted, however, tax law can be unclear at times or subject to interpretation. The policy is to not enter into transactions that have a main purpose of gaining a tax advantage; and not to make interpretations of tax law that are opposed to its original intent.
Risk Management: Diligent professional care and judgment will be employed to assess tax risks in order to arrive at well-reasoned conclusions on how the risks should be managed. Where there is uncertainty as to the application or interpretation of tax law, appropriate written advice evidencing the facts, risks and conclusions may be taken from third party advisors to support the decision-making process.
In reviewing the risks of a tax position, the following would be considered:
- the legal and fiduciary duties of directors and emploees
- the requirements of TSAM and its subsidiaries’ values and policies such as Appx 3.3 Code of Ethics policy.
- the tax benefits and impact on TSAM and its subsidiaries’ reported result comparative to the potential financial costs involved, including the risk of penalties and interest
- the wider consequences of potential disagreement with tax authorities, and any possible impact on relationships with them.
TSAM will employ various risk management processes and systems to provide assurance that the requirements of the TSAM Tax Policy are being met. This will include compliance and risk monitoring systems and internal audit reviews of tax compliance activity across TSAM and its subsidiaries.
Relationship with tax authorities: TSAM and subsidiaries are 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 otherrelevant 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.
UK context: On 9 December 2015, HMRC in the UK published a draft Framework for Cooperative Compliance in the UK, following a consultation process titled “Improving Large Business Tax Compliance”. In particular, this addresses the relationship between large businesses and HMRC in the UK, and promotes best practice in a business’ governance over its UK tax affairs. This TSAM and subsidiaries Tax Strategy and Policy aligns with the published draft, in particular, TSAM and subsidiaries commit to:
- adopt open and collaborative professional relationships at all times with HMRC;
- engage in full, open and early dialogue with HMRC to discuss tax planning, strategy, risks and significant transactions;
- make fair, accurate and timely disclosure in correspondence and returns, and respond to queries and information requests in a timely fashion;
- seek to resolve issues with HMRC in real time and before returns are filed if possible, and where disagreements arise, work with HMRC to resolve issues by agreement (where possible);
- be open and transparent about decision-making, governance and tax planning;
- reasonably believe that transactions are structured to give a tax result which is not inconsistent with the economic consequences (unless specific legislation anticipates that result), nor contrary to the intentions of Parliament; and
- interpret the relevant laws in a reasonable way, and ensure transactions are structured consistently with a co-operative relationship.