UNATRAC LIMITED: TAX STRATEGY
Unatrac Limited is a distributor of Caterpillar machinery and parts into 12 territories across East and West Africa and Middle East. We are part of the Unatrac Holdings Group of authorised dealerships.
This document sets out the tax policy of Unatrac Limited and relates to the year ended 31 December 2022. In making this tax policy document available the company is fulfilling its responsibilities under paragraph 22(2) of Schedule 19 of the Finance Act 2016.
Scope of our Tax Strategy
Unatrac Limited’s business activities incur a wide range of taxes including corporate income taxes, stamp duties, business rates, employer national insurance and other taxes. We also collect and pay employee payroll taxes as well as indirect taxes such as VAT and excise duties.
Our group board is committed to promoting the highest standards of ethical behaviour. The company’s tax strategy applies to all Directors and employees whose responsibilities impact on the management of tax in UK to ensure we comply with all relevant legislation and pay all appropriate tax at the correct time.
The Group Chief Financial Officer and Group Head of Tax are responsible for the Group’s tax strategy which is overseen and approved by the Audit & Risk committee and the company Board. Delivery of the strategy is supported by the company’s finance and commercial teams. The tax strategy is reviewed on a regular basis and any changes are approved by the Board.
Tax Strategy Statement
Unatrac Limited’s tax policy is to:
- Comply with all legal requirements and to make all appropriate tax returns within the timeframe allowed.
- Pay all appropriate tax at the right time whilst also utilising tax reliefs and incentives where available in the course of conducting our business activities.
- In the case of any uncertainty regarding taxation law to seek expert advice from external tax specialists.
- To engage with HMRC in an honest and transparent way to ensure a professional and cooperative relationship.
- To align our tax planning strategy with the Group’s commercial activities.
There is always an element of tax risk due to the complexity of tax legislation and potential differences in interpretation in relation to our business operations. Our tax risk management requires that we have the right procedures and processes in place to mitigate risks from impacting our business.
The policies we have in place ensure that we meet all our tax filing and tax compliance obligations. We are committed to act in accordance with tax law and practice in the UK. If there is a significant uncertainty in relation to a tax risk, we have relationships with professional advisors that allow us to seek specialist advice.
We continuously review our tax obligations by regularly meeting with external tax consultants, investing in tax training for staff when required, and subjecting our tax processes to both internal and external audit reviews.
Attitude towards tax risk
In making any business decisions that may potentially carry tax implications, all tax risks arising from business activities are assessed for negative impacts from both a financial and reputational perspective as part of the group’s risk and compliance framework.
Our primary focus is on minimising tax risks to the business, rather than seeking tax benefits. Consistent with the approach of Unatrac Holdings Group, we have a low threshold of tolerance of tax risk.
All tax planning undertaken by the group is conducted in alignment with commercial opportunities and considerations. Research on the tax impacts at the planning stage of a transaction ensure that the risks and opportunities inherent in transactions are effectively managed by company’s tax, finance or commercial teams.
In cases of uncertainty around tax risks for a commercial transaction, Unatrac Limited will seek the guidance of professional advisers and tax risks are considered by the Board before strategic business decisions are taken.
Unatrac Limited engages in tax planning that supports our business activities. Any tax planning undertaken will have regard to the Group’s commercial vision and strategy.
All intercompany transactions are conducted on arm’s length principles in accordance with OECD guidelines.
We do make use of those tax incentives and exemptions intentionally provided in law, for example capital allowances. But our approach is to ensure we understand and adhere to our tax responsibilities, and not to look for ways to avoid payment of tax. Any tax planning would only be undertaken if it had commercial and economic substance.
Our Relationship with HM Revenue and Customs (“HMRC”)
Our objective is to engage with HMRC in an honest and transparent way in respect of all tax matters. We will respond to requests for information in a timely manner and allow access to all relevant information. Should there be any dispute or uncertainty in the interpretation of tax laws we will collaborate with HMRC to resolve. We do employ professional tax advisors, and, in some cases, they may liaise directly with HMRC on our behalf.
Approved by the Board of Unatrac Limited for publishing on 31st May 2023