Alps Group Tax Policy

Alps Group acts in keeping with its philosophy to “create value for people and the planet through close cooperation between our group companies while maintaining their independence and autonomy, and contribute to society whilst increasing corporate value” The group pursues a corporate policy stated aim to “strive for fair management from a global perspective”. This is achieved through strictly enforcing observance of the law, our corporate policies, societal customs, and good business ethics with all our employees.

In regards to our tax processes, our core principle is to fulfil our societal obligation to pay all taxes due, in accordance with local tax law, as well as not implementing any transactions or strategies for the principal purpose of reducing our tax liability.

  • 1. Tax Governance
    Responsibility over Alps Group tax governance lies with the accounting officers of Alps Electric Co., Ltd., who the tax department reports to concerning tax reporting and management issues. Actual tax procedures are performed by the local tax departments which manage and report on tax matters. Further, Alps Electric Co., Ltd regularly reports to the board of directors regarding the status of foreign and domestic corporate tax payments. Equally, accounting officers report tax issues, including but not limited to, tax audits and examinations to the board of directors on a case-by-case basis. For highly technical issues, such as transfer pricing audits, Alps Group is assisted by external advisors.

    Management of Alps Group’s UK subsidiaries* regularly report to the accounting officers of Alps Electric Co., Ltd on local tax issues, including those of their overseas branches. Where such issues are highly technical, Alps Group’s UK subsidiaries are assisted by external advisors, as necessary.
    * I.e. ALPS ELECTRIC (UK) LIMITED and ALPS ELECTRIC EUROPE GmbH MILTON KEYNES OFFICE

  • 2. Tax Planning
    As the Alps Group expands around the globe, in order to maximize value for shareholders, we utilize various favorable tax regimes in different jurisdictions, including the UK. However, we do not do so with the intention of violating the purpose of any laws or engaging in tax avoidance.

  • 3. Tax Risk
    Decisions involving tax matters are made taking into consideration relevant tax risks and potential benefits to the specific facts and circumstances. Each case is therefore considered individually based on a conservative approach, without reference to any predetermined quantitative criteria or standards.

  • 4. Tax Monitoring
    In regards to the tax position in the various countries we operate in, our subsidiaries regularly report to the Alps Electric Co., Ltd. tax department and accounting officers on issues regarding completing of tax returns, tax examinations/audits, and tax reform, of which the tax department is continually monitoring.
    Additionally, we have external tax advisors assisting in some particularly complex/specific tax compliance issues, such as transfer pricing compliance in the various countries we operate in.

  • 5. Relationship with HMRC
    Alps Group strives to maintain an honest and sincere relationship with the tax authorities in each country we operate in, and when corrections are made / issues are raised to us by the tax authorities, excluding those cases where we find it necessary to file an objection or utilize the judicial system, we immediately seek to determine the cause of the issue and set mechanisms to prevent its recurrence.


    The publication of this strategy statement is regarded as satisfying the requirements under Paragraph 16(2), Schedule 19, Finance Act 2016.





Wilfried Baumann
President
ALPS ELECTRIC EUROPE GmbH