Terex Corporation
Terex UK Group Tax Strategy
2023
In
accordance with Paragraph 16(2), Schedule 19, Finance Act 2016, Terex
Corporation sets out below its tax strategy (“Tax Strategy”) for all UK
companies (“Terex UK”) within the Terex worldwide group (“Terex Group”)
for the financial year ending 31 December 2023. The Terex UK Tax
Strategy applies to the UK taxes that Terex is subject to. The Tax
Strategy is reviewed annually and updated where required.
About Terex
Terex Corporation and subsidiaries (“Terex Group”) is a US multinational corporation that is publicly traded on the New York Stock Exchange and subject to its full regulatory framework. As of 2023 Q1, Terex is comprised of about 92 legal entities incorporated in 31 countries. Terex generates approximately USD 4.4 billion in annual sales and currently operates in two segments, Aerial Work Platforms (“AWP”) and Materials Processing (“MP”).
As part of the Terex
Group, Terex UK is aligned with, and follows, the wider Terex guiding
principles, code of ethics and conduct, and tax policies. First and
foremost, the Terex Way Values demand and support a culture of tax
compliance and the Tax Strategy is grounded in the Terex Way Value of
integrity and our commitment to comply with all laws and regulations.
The Tax Strategy is focused on ensuring that taxes are calculated, and
tax risk is managed to provide outcomes that are within the parameters
of the strategic objectives of Terex, consistent with commercial reality
and compliant with the applicable tax laws. The Tax Strategy requires
that all tax regulations are complied with in the UK and other relevant
jurisdictions. The Vice President, Chief Tax Officer (“CTO”) is
responsible for management of the tax affairs and global tax risks of
Terex Group. The CTO reports to the Senior Vice President, Chief
Financial Officer of Terex.
Risk Management and Governance Arrangements
Responsibility for Terex policy, including tax policy, ultimately resides with the Board of Directors of Terex Corporation. The role of the Board is to focus on strategic direction and oversight of critical business risks, not to direct regular operating activities. Managing tax compliance is an increasingly complex area and the Terex Group, including Terex UK, consistently monitors local and global markets, industry trends, and current and developing tax legislation in order to set tax governance. Terex uses knowledge, detailed processes, and internal controls to reduce tax risk to acceptable levels. As part of governance of tax matters, several arrangements exist, including, but not limited to:
- Quarterly formal certification procedures including the identification, evaluation, monitoring and reporting of tax issues and risks;
- Complying with internal control procedures and processes, which are subject to regular reviews, internal audits and self-assessment;
- Various reviews and audits of UK tax activities and compliance undertaken by third-party consultants and auditors, and
- Regular
communication with UK tax authorities to ensure business risk is
managed and provision of mutual assurance around the UK tax activities
of Terex.
Terex UK Approach to Tax Planning
Terex
UK believes it has an obligation to timely and accurately pay its
taxes. It seeks to pay no less and no more than required by the
application of laws to its facts and operations. The tax planning
objectives of Terex UK are to support the commercial needs of the
business by ensuring that its operating activities are carried out in
the most financially efficient manner whilst remaining compliant with
all relevant laws. Terex UK does not engage in transactions for which
the purpose is to reduce UK tax. Terex carefully evaluates the impact
of tax arrangements on the reputation, corporate, and social
responsibilities of Terex UK and Terex Corporation as a whole.
Terex
UK will seek further advice, as needed, from competent external
third-party tax advisors to provide assurance around technically complex
areas of UK tax in order to adequately assess tax consequences.
Consultation ensures that appropriate and technically sound tax
decisions are made.
Terex UK and its Tax Risks
Terex
UK endeavors to be compliant with tax regulations, requirements, and
reporting. Terex UK will not knowingly take tax positions contrary to
legislative requirements and thus seeks to minimize the level of risk in
relation to UK taxation. Terex UK is focused on reducing the level of
tax risk arising from its operations as far as is commercially
reasonable by implementing various internal tools and controls for its
business units to follow. Terex UK maintains tax accounting
arrangements which are robust and enable the business to fulfill its
responsibilities under the Senior Accounting Officer provisions in the
UK.
Relationship with HM Revenue and Customs (“HMRC”)
Terex UK is committed to complying with its UK tax obligations and seeks to build and sustain an open and transparent relationship with HMRC that is constructive and based on the principles of accuracy, cooperation, compliance, and integrity. Terex UK seeks to comply with its UK tax responsibilities through:
- Submission of accurate tax returns and disclosures;
- Informing HMRC of significant changes in the business conducted by Terex UK;
- Disclosing and discussing uncertainties as and when they arise;
- Focusing on, and seeking to resolve, significant issues, and
- Working
collaboratively, co-operatively, and in a timely and professional
manner with HMRC and the designated Customer Relationship Manager
(“CRM”).
Attitude Towards Tax Evasion
Terex
Group prohibits any form of tax evasion for itself, and will not
participate or support any form of tax evasion by its customers,
suppliers, and associated representatives. Terex Group has policies and
procedures that aim to ensure that none of its employees or anyone
acting on its behalf facilitate the evasion of tax in the UK or any
other jurisdiction.
Date published: April 2023