TAX STRATEGY
Last update [March 26 , 2024]
Sumika Polymer Compounds (Europe) Ltd – Sumika Polymer Compounds (UK) Ltd
This tax strategy covers both above-named UK companies.
Introduction
Sumika Polymer Compounds (Europe) Ltd is a holding company, which owns Sumika Polymer Compounds (UK) Ltd, as well as other manufacturing subsidiary companies, located in France, India, Poland and Turkey. It is itself part of a global group headed by Sumitomo Chemical Co. Ltd., of Japan.
Sumika Polymer Compounds (UK) Ltd manufactures high performance plastic compounds, mainly for the white goods and automotive sectors in Europe.
Our approach to risk management and governance arrangements in relation to UK taxation
The tax governance of our business is led by the Board of Directors, which delegates responsibility for day-to-day tax matters to the Group Tax Manager who is supported by the finance team.
Tax risks are identified across the business by those individuals and escalated as necessary to the Board. It ensures that all staff are fully aware of their tax responsibilities.
To ensure that tax returns are appropriately reviewed, there is a separate preparer and reviewer of our tax returns. Further, tax payments must be authorised in line with our approval matrix.
The Board and other senior management discuss business changes, including any associated tax consequences.
The wider group’s Internal Audit team, which is based in Japan, periodically carries out reviews to identify any significant tax risks and determine the appropriateness of the controls in place over those risks.
Where there is complexity or uncertainty about our tax affairs, we also seek external advice to help us to minimisethe risk of any non-compliance
Our attitude to tax planning
We seek to be efficient in our tax affairs, appreciating that we have an obligation to the shareholders of our Group. However, our primary objective is to be compliant with the tax legislation and we ensure that our tax arrangements are aligned with the commercial reality of our business. Tax is merely one of the factors that we consider, together with other financial and reputational factors, to comprehensively judge our business transactions.
The level of risk in relation to UK taxation that we are prepared to accept
We have a low tolerance to tax risk. To minimise tax risks, any potentially significant tax risks are identified, assessed, and controlled by the President, General Manager, Group Head of Finance and Group Tax Manager.
Approach to dealings with HMRC
Because our tax affairs are relatively straightforward, there is rarely a need to communicate with HMRC outside of our normal compliance process. When we do correspond with HMRC, we are open and transparent in our communications, and we will voluntarily disclose any issues which may arise as soon as is practicable.
This Tax Strategy applies to our financial year ending 31 March 2024 and has been prepared in accordance with the requirements of paragraph 22(2) of Schedule 19 of the Finance Act 2016.