MOBIS Parts Europe N.V. - UK Tax Strategy Statement
Business Strategy and Tax Strategy Vision
Mobis Parts Europe N.V. is incorporated in Belgium and has seven distribution centres in Europe for after-sales parts and service. Since 2008, Mobis Parts Europe N.V. has had a UK branch in North Warwickshire.
The Hyundai Mobis group, utilises a wide range of national and international businesses in our auto parts supply chains. The group has a global network of businesses to develop and manufacture modules and supply parts and accessories to the automotive industry.
We are currently ranked sixth globally for suppliers. Our strategy is to be in the global top tier of the parts industry, as well as to develop sustainable technologies for the future.
Our corporate social responsibility vision is to perform the role of as a" trustworthy partner for today and tomorrow". We acknowledge the value of stakeholders including customers, the communities around us, partners and agents, the world state, shareholders and investors, employees and all other stakeholders.
Our internal tax department at Mobis Parts Europe N.V. shares the same values as the group as a whole and strives to act as a global business partner to support the delivery of the business strategy. We maintain this strong corporate relationship through our strategic vision.
The finance department in our UK branch of Mobis Parts Europe N.V. supports the business aim of ensuring compliance with tax legislation and tax risk management. Our aim is to be recognised as a fully complaint, transparent and co-operative organisation locally and globally.
Approach to tax risk management and governance
The tax strategy is led by the CFO who also has ultimate responsibility for the Pan Europe Finance department.
Our established business wide risk management process, including our Global Compliance Guidelines are embedded within the business and aims to support the identification and effective management of risks across it, including tax. It also covers comprehensive record keeping and regular internal auditing of processes via our Global Internal Accounting Control System (“GIACS”).
The Pan Europe Finance department is responsible for risk identification and the implementation and monitoring of controls to manage risk on behalf of the CFO. Local controllers liaise with the Pan Europe Finance department to deliver risk management and governance locally (including tax).
Local controllers are responsible for ensuring all local tax filings are made in a timely manner, compliant with relevant tax law and regulations and that any tax payments are made on time.
Tax compliance and significant risk management matters are raised at monthly and quarterly reviews with the Board.
Mobis Parts Europe N.V. has a developing tax risk management process to support the identification and effective management of tax risks across the business. Our risk management and governance process are being developed as the business grows.
Our developing tax governance framework, will support us to achieve our tax strategy, which covers all UK taxes, and ensure any risks are identified, evaluated and managed in a timely manner.
All individuals with a tax responsibility are suitably qualified to understand tax issues and strive to keep up to date on tax, attending seminars and training courses as required.
In addition we use external tax advisors to support us from a tax compliance perspective and to provide us with regular updates on tax matters including changes to legislation and HMRC guidance. Relevant tax updates are circulated internally to appropriate stakeholders as required.
Level of risk we are prepared to accept
Our appetite for tax risk is low. This is in-line with our wider corporate approach to business risk. Operations are only structured based on sound commercial and business principles.
The board is committed to minimising risk by utilising the GIACS framework and ensuring all relevant employees are trained, mentored and monitored.
We acknowledge that the elimination of all tax risk is impractical due to complexity of tax legislation and differences in interpretation, however the group is committed to the identification and monitoring of relevant tax risks.
Timely communication is key, at all levels, to ensure the tax implication of business decisions are fully understood and that tax risks are managed accordingly to the low level of risk we are prepared to accept as a group.
To ensure risks are known and therefore can be minimised, we are currently in the process of reviewing our UK tax risk management and governance framework to enhance and develop tax controls where required.
Given our simple and straightforward UK business model, we are comfortable our low tax risk tolerance can be achieved by our developing tax governance framework. We strive to comply with relevant tax legislation and regulations.
Our local tax returns are always reviewed by our Pan Europe Finance department, as well as our external tax advisor to ensure competence and accountability in our tax compliance and all other tax decisions.
Attitude towards tax planning
Our attitude to tax planning is carefully aligned to the strategic and commercial objectives of our UK operations and globally the tax department is kept informed of all significant commercial transactions.
We strive to achieve a high level of compliance in a professional manner. We will engage with our external tax advisors when any transaction is undertaken in uncertain, complex and/or other risk areas. In addition we are currently developing enhanced tax processes in Europe in order to respond to the new legislation locally and globally.
The advantages of available tax reliefs, incentives and exemptions, for example available tax deductions on capital investments, are only taken if aligned with commercial and economic activity and are not opposed to the original spirit of the law and are offered to all taxpayers by the UK government.
Though we strive to be tax efficient in order to grow our business, we do not enter into any aggressive tax planning arrangements. Our tax activities shall not compromise our internal Global Compliance Guidelines or cause damage to the brand or reputation of the Hyundai Mobis group.
Approach towards dealing with tax authorities
We are committed to an open and transparent relationship in all our dealings with HMRC, encouraging open dialogue on a timely basis. This is led from the Board of Mobis Parts Europe N.V.
We work with HMRC to answer any queries or resolve any differences in a timely and professional manner, responding to enquiries by due dates and being fully cooperative and compliant.
We engage regularly with HMRC on all compliance matters, updating HMRC in real time on transactions and other changes to our business. We are confident that our tax records are accountable and transparent.
Our published tax strategy applies to the UK branch of Mobis Parts Europe N.V., part of the Hyundai Mobis group and covers all UK taxes. It has been approved by the Board of Mobis Parts Europe N.V. and satisfies Schedule 19 of the UK Finance Act 2016 in respect of the period ending 31 December 2017.