Scope and Aim
Envision AESC UK Ltd (EAUK) is a limited company registered in England and Wales, and is wholly owned by our Japanese parent entity Envision AESC Japan Ltd. In accordance with Schedule 19 of the Finance Act 2016, EAUK sets out below its tax strategy for the year ending 31 March 2022 which will be reviewed on an annual basis. EAUK is fully committed to comply with all statutory obligations and full disclosure to tax authorities.
Background
- The principal activity of EAUK is the manufacture of lithium-ion batteries at its plant in Sunderland.
- The batteries are primarily sold to the automotive industry as the batteries are a key component in the production of electric vehicles.
- A small proportion of sales are sold to non-automotive customers for use in off highway applications.
- EAUK employs around 400 people, all working at the Sunderland plant.
- EAUK is owned by Envision AESC Japan and therefore the UK tax strategy is governed by the wider global approach to tax by the Envision AESC group.
Risk Management and Governance
There are several levels of control to limit tax risk and provide governance. These include
- The EAUK Code of Ethics and Standards of Conduct policy sets out the professional standards and levels of integrity that is expected of employees. All staff are aware of this policy and there are visual management reminders within the plant.
- The Senior Accounting Officer regime applies to UK entities and controls are in place to ensure correct tax accounting.
- As part of Envision AESC group Corporate Governance, EAUK is required to report key compliance activities to the independent internal audit function of the parent company.
- There is a global system in place to ensure that decisions on tax matters (as well as many other areas of business) are discussed and approved at the appropriate level within the organisation. This ensures that any local decision with regards to tax is visible within the senior management group of the parent entity.
- The EAUK Board of Directors are briefed on any material tax issues, and also approve this tax strategy prior to publication.
- EAUK seeks to reduce the level of tax risk as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations
- EAUK employs qualified staff to manage and control its processes and, where appropriate, will engage external tax advisors to provide guidance on more complex issues.
Attitude towards Tax Planning and Level of Risk
EAUK manages its tax affairs to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax. EAUK will seek to utilise available tax incentives, reliefs and exemptions to minimise tax costs in line with, and within the spirit of, tax legislation. EAUK does not use contrived structures or enter into non-commercial arrangements to reduce tax.
EAUK only accepts a low level of tax risk to ensure compliance and to uphold its reputation as a responsible corporate citizen.
Relationship with HMRC
EAUK seeks to maintain a transparent and professional relationship with HMRC with regard to tax risks and compliance. EAUK will make full and accurate disclosures in tax returns and in correspondence with HMRC, and shall deal with issues in a timely and collaborative manner.
Date Published: March 2022