Schaeffler Group's approach to tax
Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd represent the SCHAEFFLER Group in the UK.
The principal activities of Schaeffler (UK) Limited are the manufacture of clutch assemblies for the passenger car and agricultural tractor industries and the sale of anti-friction bearings and precision components to the industrial sector.
The principal activity of Schaeffler Automotive Aftermarket (UK) Ltd. is the distribution of vehicle components to the after sales market. Additionally, the company offers comprehensive services to garages.
The following information is provided in compliance with the requirements of Finance Act 2016 Schedule 19, paragraphs 19, 22. This strategy applies for the Financial Year 2023 and continues thereafter until it is superseded. The overall goal of SCHAEFFLER Group’s tax policy is to support its business by maintaining a sustainable tax rate while complying with tax law and regulations and mitigating tax risks in the jurisdictions in which SCHAEFFLER Group operates.
SCHAEFFLER Group`s worldwide business activities generate a substantial amount and variety of taxes, including taxes in the UK, which are set out in paragraph 15(1) of the Schedule and include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Group has legal responsibilities.
In line with the SCHAEFFLER Group`s approach to tax, Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd undertake to comply with all applicable UK and international tax laws. This is just one aspect of sustainable corporate management. Violations against these laws may result in significant consequences for the SCHAEFFLER Group and / or individual employees. During all corporate decisions, the SCHAEFFLER Group considers the tax-related consequences by using an open and honest dialogue and a transparent tax policy for the company. The SCHAEFFLER Group focuses on meeting all obligations as a taxpayer using the governance and risk management processes that are in place.
Risk management and governance arrangements in relation to taxation
Efficient cooperation between the Board of Managing Directors and the Supervisory Board, as well as an openness and transparency in corporate and financial communications, are key aspects of the SCHAEFFLER Group’s corporate governance that strengthen the confidence of shareholders, business partners, and employees in the company’s management and supervision. The SCHAEFFLER Group’s risk management system, including tax risk management, is an integral component of its governance structure and covers both tax risks and opportunities. Responsibility for the risk management system rests with the Board of Managing Directors of the group parent company Schaeffler AG in Germany. The Board of Managing Directors regularly reports to the Schaeffler AG audit committee and ensures that necessary risk management measures are approved.
The tax strategy of the SCHAEFFLER Group is to comply with all relevant tax laws and obligations and to safeguard a tax-optimized handling of all issues under these circumstances, as well as to handle all tax-related consequences resulting from business transactions in Germany and in other jurisdictions. The Executive Board of Schaeffler AG is aware of the social responsibility of the company and the requirement for an adequate financing of the countries, which means in particular the appropriate tax contribution owed by the SCHAEFFLER Group, including Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd according to the economic capacity in UK and other countries.
The level of risk in relation to taxation that we are prepared to accept
The Executive Board of Schaeffler AG has implemented a tax compliance management system focused on preventing damages and controlling risks, which serves to ensure compliance with tax-related obligations throughout the Group and is in line with the governance model of the SCHAEFFLER Group. The Executive Board has transferred the tasks to review compliance, along with tax-related obligations for the companies, that are part of the SCHAEFFLER Group, to the Corporate Tax Department. The tax compliance management of Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd are within the responsibility of the UK tax team. Processes relating to different UK taxes are allocated to appropriate specialist functions within the tax team who carry out a review of activities and processes to identify key risks and ensure mitigating controls are in place.
SCHAEFFLER Group`s attitude towards tax planning
SCHAEFFLER Group engages in reasonable tax planning which supports our business and reflects
Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd represent the SCHAEFFLER Group in the UK.
The principal activities of Schaeffler (UK) Limited are the manufacture of clutch assemblies for the passenger car and agricultural tractor industries and the sale of anti-friction bearings and precision components to the industrial sector.
The principal activity of Schaeffler Automotive Aftermarket (UK) Ltd. is the distribution of vehicle components to the after sales market. Additionally, the company offers comprehensive services to garages.
The following information is provided in compliance with the requirements of Finance Act 2016 Schedule 19, paragraphs 19, 22. This strategy applies for the Financial Year 2023 and continues thereafter until it is superseded. The overall goal of SCHAEFFLER Group’s tax policy is to support its business by maintaining a sustainable tax rate while complying with tax law and regulations and mitigating tax risks in the jurisdictions in which SCHAEFFLER Group operates.
SCHAEFFLER Group`s worldwide business activities generate a substantial amount and variety of taxes, including taxes in the UK, which are set out in paragraph 15(1) of the Schedule and include Income Tax, Corporation Tax, PAYE, NIC, VAT, Insurance Premium Tax, and Stamp Duty Land Tax. References to ‘tax’, ‘taxes’ or ‘taxation’ are to UK taxation and to all corresponding worldwide taxes and similar duties in respect of which the Group has legal responsibilities.
In line with the SCHAEFFLER Group`s approach to tax, Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd undertake to comply with all applicable UK and international tax laws. This is just one aspect of sustainable corporate management. Violations against these laws may result in significant consequences for the SCHAEFFLER Group and / or individual employees. During all corporate decisions, the SCHAEFFLER Group considers the tax-related consequences by using an open and honest dialogue and a transparent tax policy for the company. The SCHAEFFLER Group focuses on meeting all obligations as a taxpayer using the governance and risk management processes that are in place.
Risk management and governance arrangements in relation to taxation
Efficient cooperation between the Board of Managing Directors and the Supervisory Board, as well as an openness and transparency in corporate and financial communications, are key aspects of the SCHAEFFLER Group’s corporate governance that strengthen the confidence of shareholders, business partners, and employees in the company’s management and supervision. The SCHAEFFLER Group’s risk management system, including tax risk management, is an integral component of its governance structure and covers both tax risks and opportunities. Responsibility for the risk management system rests with the Board of Managing Directors of the group parent company Schaeffler AG in Germany. The Board of Managing Directors regularly reports to the Schaeffler AG audit committee and ensures that necessary risk management measures are approved.
The tax strategy of the SCHAEFFLER Group is to comply with all relevant tax laws and obligations and to safeguard a tax-optimized handling of all issues under these circumstances, as well as to handle all tax-related consequences resulting from business transactions in Germany and in other jurisdictions. The Executive Board of Schaeffler AG is aware of the social responsibility of the company and the requirement for an adequate financing of the countries, which means in particular the appropriate tax contribution owed by the SCHAEFFLER Group, including Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd according to the economic capacity in UK and other countries.
The level of risk in relation to taxation that we are prepared to accept
The Executive Board of Schaeffler AG has implemented a tax compliance management system focused on preventing damages and controlling risks, which serves to ensure compliance with tax-related obligations throughout the Group and is in line with the governance model of the SCHAEFFLER Group. The Executive Board has transferred the tasks to review compliance, along with tax-related obligations for the companies, that are part of the SCHAEFFLER Group, to the Corporate Tax Department. The tax compliance management of Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd are within the responsibility of the UK tax team. Processes relating to different UK taxes are allocated to appropriate specialist functions within the tax team who carry out a review of activities and processes to identify key risks and ensure mitigating controls are in place.
SCHAEFFLER Group`s attitude towards tax planning
SCHAEFFLER Group engages in reasonable tax planning which supports our business and reflects our commercial and economic activity. The UK entities do not engage in artificial tax arrangements. Transfer Prices between SCHAEFFLER Group`s affiliated companies are subject to the Arm’s Length principle and other applicable OECD principles. Therefore, affiliated companies within the SCHAEFFLER Group conduct their business and prepare their contract agreements as is customary between independent parties under the same or similar (comparable) conditions. SCHAEFFLER Group supports the implementation of OECD`s requirements on country-by-country reporting (“CBCR”) as part of the Base Erosion and Profit Shifting (BEPS) project, and in alignment with our values of transparency and integrity.
SCHAEFFLER Group`s approach towards dealings with HMRC
Schaeffler (UK) Limited and Schaeffler Automotive Aftermarket (UK) Ltd will cooperate with all tax authorities in an open and respectful manner. SCHAEFFLER Group seeks to build and sustain transparent, constructive and collaborative professional relationships with governments and fiscal authorities.