UK Tax Strategy
WWT EMEA UK Limited is a subsidiary of World Wide Technology International LLC (WWT), a company incorporated in USA. The following statement sets out the tax strategy of WWT in the UK.
WWT is an award-winning systems integrator and supply chain solutions provider that offers innovative technology and supply chain solutions to large public and private organizations. The company brings to market a powerful blend of knowledge, infrastructure and technology to help its customers discover, evaluate, architect and implement technology products and solutions.
Responsibility for the tax strategy ultimately resides with the Chief Financial Officer (CFO). Day-to-day responsibility is delegated by the CFO to the Global Director of tax and local management in countries outside of the United States of America.
WWT is committed to complying with all of the tax laws and practices of the countries in which we do business, including the UK.
WWT proactively identifies and manages its tax risks and continuously monitors changes in tax law and practice. This is accomplished with the assistance of tax consultants and preparers in the applicable country of operations.
At operational level in order to ensure the correctness and completeness of UK tax compliance filings a system of controls and processes have been developed to minimise the risk of errors arising beyond a materially acceptable level. This system is subject to periodic review both internally and externally, by auditors and revenue authorities, and is updated as appropriate for changes in legislation which may have an impact on its operation.
Utilising this system the WWT seeks to minimise the level of tax risk that can arise from commercial operations as far as reasonably possible by taking reasonable care in application of those controls and processes, having particular regard to those transactions which could have a material impact on its tax obligations.
This is supported by WWT seeking:
- To maintain tax accounting arrangements suitable to the Groups operations;
- To make correct payments of tax, including estimated payments on account, when falling due; and
- To make timely filings of relevant tax returns.
WWT utilises external advisors to prepare and submit annual Corporation Tax returns to HMRC.
WWT applies the same risk management techniques to tax as it does throughout all business functions.
WWT accepts its responsibility to pay the applicable tax in all jurisdictions while maintaining a consistent and efficient structure globally. External advice is sought with regard to tax planning or complex areas of tax for which internal expertise does not exist.
As a policy, the company does not undertake aggressive taxplanning, does not tolerate tax evasion, nor does it tolerate the facilitation of tax evasion by anyperson(s) acting on the behalf of the company.
In cases where genuine alternative tax treatments may exist for any commercial transaction the most tax efficient approach will be taken, subject to ensuring compliance with existing legislation and overall WWTobjectives.
WWT does not have a prescribed level of acceptable tax risk. We consider tax risk on a case by case basis taking into account the relevant facts and circumstances. We employ experienced tax professionals to identify uncertainties and ensure risks are fully assessed. Where appropriate we seek external professional advice.
It is the goal at WWT to comply with all tax filing, reporting, and payment obligations on a global basis. WWT aims to develop and maintain transparent and cooperative working relationships with all taxing authorities including HMRC. WWT seeks to timely respond to inquiries from taxing authorities and minimize disputes whenever possible.
HMRC have previously published a draft Framework for Cooperative Compliance to address the relationship between large businesses and HMRC, and which promotes best practice in a businesses' governance over its UK tax affairs. WWT considers its tax strategy a fully encompassing framework, including:
- Promotes a collaborative professional working relationship with HMRC, building an open, transparent and trusted relationship;
- Engages in open and early dialogue with HMRC to discuss tax planning, strategy, risks and significant transactions and fully discloses any significant uncertainty in relation to tax matters;
- Responds to queries, information and requests in a timely fashion;
- Seeks to resolve issues with HMRC in real time and before returns are filed if possible;
- Makes fair, accurate and timely disclosure to HMRC in relevant returns and documents;
- Where disagreements over tax arise, will work with HMRC to resolve issues by agreement (where possible) and reach reasonable agreement;
- Is open and transparent with regards to decision making, governance and tax planning, keeping HMRC informed of who has responsibility and how decisions are reached;
- Avoids structuring transactions in a way which will have tax results that are inconsistent with the underlying economic consequences unless there exists specific legislation designed to give that result;
- Interprets the relevant tax laws in a reasonable way, and ensure transactions are structured in a way that is consistent with a relationship of co-operative compliance with tax authorities;
- Applies an "Openness and Early dialogue" approach which sets out the specific tax risk identified and avoids opening unnecessarily wide-ranging enquiries;
- Discusses risks and transactions on a "real time" basis (i.e. pre-transaction or pre-return).
Where there remain areas of doubt the Group seeks to fully make appropriate disclosures on submissions to HMRC and in the event of any errors being identified these are immediately addressed, again being fully disclosed as necessary.
The group is also within the Senior Accounting Officer legislation, as set out in Schedule 46 Finance Act 2009, requiring an annual declaration aligned to ensuring the group has appropriate tax accounting arrangements in place founded on accepted underlying tax governance and systems.