Tax strategy

Introduction

Hamamatsu Photonics UK Limited (“HPUK”) sets out its strategy for conducting its tax affairs and managing tax risks.

 

This strategy is approved by HPUK Board of Directors and will be reviewed annually. HPUK believes its publication complies with the requirements under Schedule 19 of Finance Act 2016.

Commitment to compliance

HPUK is committed to complying with tax law and practice in both the UK and overseas. This means paying the right amount of tax, in the right jurisdiction, at the right time. This includes corporation tax, indirect taxes (VAT and excise duties), employment taxes and any other applicable taxes. It is our aim to comply with all relevant laws, rules and regulations and all reporting and disclosure requirements at all times.

Relationship with HMRC

HPUK aims to maintain a professional, open and co-operative relationship with HM Revenue & Customs (‘HMRC’) based on collaboration, mutual trust, transparency and integrity. This includes being punctual with the submission of the tax returns, the payment of any tax that is due and presenting information to HMRC in an open and transparent manner.

 

In particular, we ensure that any transfer pricing agreements are kept up to date and all related reporting requirements are complied with in a timely manner.

How we manage our business’s tax risks

We are committed to paying the right amount of tax at the right time and we have a low appetite for incurring penalties or interest payments.

 

Hamamatsu operates in a risk adverse manner in relation to its tax affairs and where appropriate, we seek professional advice from external tax advisors. External tax advisors prepare our annual Corporation Tax Return, which is reviewed for accuracy and completeness by the appropriate personnel within the company. Professional advice is sought over any specific areas where the tax treatment is uncertain.

Tax planning and risks

In structuring our commercial activities, we will consider the tax laws of the countries in which we operate and take advantage of any incentives or reliefs that are available to us through our commercial activities. We do not seek to create any structures that lack commercial and economic substance for which the main purpose is the avoidance of tax.

Level of Risk HPUK is prepared to accept for UK taxation

Given the size and nature of its business, the tax risk profile of HPUK is considered as very low.