The nature of Casio Electronics Ltd ( Casio UK ) is relatively straight forward as are our UK tax affairs, and we aim to be a responsible taxpayer. As one of Casio Computer Co., Ltd ( Casio ) Group entities, Casio UK is guided by the Casio Global Code of Conduct, which in particular states:
The Casio Group Code of Conduct stipulates that all executive officers and employees must comply with the relevant international laws and practices of individual countries and/or regions in their daily activities as a part of Casio Group’s global operations.
In relation to Casio’s tax affairs and operations, Casio strives to ensure that the appropriate amount of tax is paid in compliance with each country’s tax laws, taking into account tax specific legislation in relation to transfer pricing, anti-tax avoidance measures, international tax and other statutes.
This document sets out Casio UK s strategy towards its UK taxation matters and covers all operations carried out in the UK.
This document is published in accordance with Schedule 19 Finance Act 2016.
Our Tax Principles and Tax code of conduct
The governing principles and code of conduct which put together our approach to tax obligations are as follows:
- We aim to pay the right amount of tax in accordance with the tax laws.
- The legal framework set by national legislators is our obligation.
- Tax is considered in all significant business decisions to make sure all applicable tax laws are followed, but tax is not the driver of any business decision we make.
- Provision of timely information to HMRC
- Casio UK does not seek to undertake any tax planning activities that are deemed to be aggressive by us or our stakeholders at large, that lack commercial purpose or are designed to avoid tax. Where applicable, Casio will claim UK corporate tax reliefs & incentives for its activities in accordance with UK tax legislation and widely accepted practice, including those available for research and development.
Casio UKs Board of Directors is ultimately responsible for the tax matters relevant to the UK. Responsibility for all UK tax matters has been delegated to Casio UK s Financial Controller, who has in turn delegated the day-to-day management of tax to Casio UK s Finance Manager who is supported by members of the Finance team. The team consists of appropriately qualified employees within the UK business.
We will engage third party advisors to assist with our tax obligations as and when required. We seek support from advisors in relation to:
- the management and preparation of all tax compliance activities;
- provision of advice on complex areas of UK tax matters and clarity on any key areas of uncertainty; and
- provision of insights into changes in UK tax law and regulations and how they may impact our business operations in the UK.
Approach to risk management
We are a responsible taxpayer. We take a conservative approach to meeting our tax obligations, and are commercially led, and as such we will not consider entering into transactions or undertaking any activities with the sole purpose of minimising our tax liabilities.
Our key tax risks include the failure to file accurate tax returns by the appropriate statutory deadline and ensuring that we pay the correct amount of tax in accordance with all applicable tax laws. We mitigate these risks by engaging third party advisors to support us in meeting our tax compliance obligations.
Acceptable level of risk
We have a low tolerance for tax risk and take a prudent approach to manging tax risk. However, there is no pre-defined level of acceptable tax risk and each tax risk is assessed on a case by case basis.
Attitude toward tax planning
We have no appetite for undertaking any transaction aimed at avoiding tax. As noted above, all transactions we enter into and activities carried out in the UK must be commercially led.
Our focus is to work within both the letter of the law and the intentions of Parliament to ensure that we comply with all tax obligations relevant to our business.
That said, we do conduct and organise our business and operations in a tax efficient manner in accordance with not only the letter of the law but also as intended by Parliament and in doing so, we make use of all tax incentives and reliefs as they are intended.
Working with HMRC and other relevant tax authorities
Casio UK seeks to be a proactive and responsible tax payer. We therefore aim to:
- act professionally and openly with HMRC at all times;
- make full disclosures in our tax returns;
- respond to any HMRC audit and enquiry on a timely basis; and
- work collaboratively with HMRC to resolve any areas of dispute.
In circumstances where an area of tax law is complex and may have a material impact to our financial position, we will also seek to have real time discussions with HMRC in order to gain certainty over the treatment for tax purposes and to avoid the potential for any future dispute.