Secure Holding Limited
Tax Strategy
1. Introduction
Secure Holdings Limited is a UK Group whose principal activity is the design, manufacture and marketing of a range of products for the security market and it operates globally. The Groups ultimate parent company is Hangzhou Hikvision Digital Technology Co Ltd, incorporated in China.
This document sets out the strategic tax objectives of Secure Holdings Limited and its subsidiaries (“the Group”).
The Finance Director is responsible for leading the Tax Strategy. The strategy is approved by the Board of Directors and provided to the ultimate parent company tax department for review.
The document will be periodically reviewed and any amendments will be approved by the Board of Directors.
This document is primarily of relevance to the Finance Team together with the Board of Directors who are responsible for tax across the organisation.
The following taxes are in scope
• All direct taxes including Pay As You Earn (PAYE) and Corporation Tax (CT)
• All indirect taxes including VAT and Customs and Excise Duty
2. Our Strategy
Secure Holdings Limited group is committed to paying the right amount of tax, in the right place and at the right point in time as required under the laws and regulations of UK tax legislation. The Group takes a conservative approach to tax planning, and does not pursue aggressive tax planning arrangements. The group uses third party advisors to provide advice and guidance where necessary to ensure its compliance with applicable laws, rules, regulations, and reporting and disclosure requirements.
Approach to risk management and governance arrangements in relation to UK taxation
We will operate effective tax governance, understanding the tax risks in place and ensure that senior personnel with the appropriate skill and experience are involved in key tax decisions.
The group wants to ensure that it pays an appropriate amount of tax in relation to its commercial activities, in the right place and at the right time. It does not engage in aggressive tax planning arrangements, and believes that it is conservative in its approach to tax planning, aiming to align with tax law.
The group has a capable finance team with clear roles and responsibilities of staff to ensure compliance with tax (and financial) requirements. Staff are suitably skilled, and training is offered as considered relevant to ensure staff are capable to carry out their role. In cases of uncertainty, matters will be referred to the Finance Director who may seek advice from external professional advisors, or seek advice from HMRC directly for assistance in interpretation and application of tax rules.
Attitude towards tax planning and level of risk it is prepared to accept
The Group commits to giving due consideration to factors such as commercial alignment, technical support/advice and reputational implications in its approach to tax planning and does not pursue contrived tax planning arrangements. Where alternative routes exist to achieve the same commercial result the most tax efficient approach in compliance with all relevant laws shall be considered.
We seek to be efficient in our tax affairs but ensure that any planning is based on sound commercial principles.
The Group will use incentives and reliefs that exist to minimise the tax costs of conducting its business activities, but will only undertake arrangements which they reasonably believe do not contradict tax laws.
Constructive approach to dealing with HMRC
We will avoid unnecessary time consuming disputes wherever possible.
We are committed to working with honesty, integrity and timeliness with HMRC at all times. We adopt the principles of openness and transparency in the approach to dealing with HMRC and believe in engaging in full, open and early dialogue with HMRC to discuss the Group’s tax affairs when required.
The Group is committed to making fair, accurate and timely disclosure in correspondence and returns, and respond to queries raised by HMRC in a timely manner with the aim to resolve any issues in real-time where possible or to work together to resolve issues quickly and efficiently, with certainty wherever possible.
The Group is committed to accurate and timely filings and payments of tax returns and tax due to HMRC.
3. Governance
The Board of Directors acknowledges that is has responsibility for fully complying with the tax laws in all relevant jurisdictions.
The Board of Directors is responsible for establishing the overall approach to the tax strategy. However, management authority for the day to day operation of the business is delegated to the Finance Director.
To ensure that the Tax Strategy is delivered professional care and judgement is employed to assess the risks and ensure they are managed.
The organisation of the management of tax across the group can be described as follows:
Finance Team
The Finance team employs various management processes and systems to provide assurance that the requirements of the Group’s tax strategy are met.
Use of Professional advisors
Matters where the Finance Director considers there is insufficient skill or experience internally are referred to external professional advisors who have suitable knowledge of the company, and hold suitable accounting and tax qualifications, as well as relevant experience.
The Board of Directors review the Groups tax strategies on an ongoing basis.
Secure Holdings Limited regards this publication as complying with Part 2 of Schedule 19 of the 2016 Finance Act.
The Tax Strategy applies to the following companies: Hikvision UK Limited, Secure Holdings Limited, Pyronix Limited and Microwave Solutions Limited.