This strategy applies to Mettler Toledo Finance (UK) Limited and all of its UK subsidiaries in accordance with Schedule 19 to the Finance Act 2016 (‘the Schedule’). In this strategy, references to ‘Mettler Toledo’, or ‘the Group’ are to all these entities. The strategy is being published in accordance with paragraph 16(4) of the Schedule.
This strategy applies from the date of publication until it is superseded. References to ‘UK Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule which 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.
Background
Mettler Toledo is a leading global manufacturer of precision instruments and services for use in laboratories and manufacturing. Mettler Toledo considers corporate responsibility to be integral to its business and demands that all its employees act ethically and with integrity. Mettler Toledo is committed to full compliance with all statutory obligations and full disclosure to relevant tax authorities. The Group’s tax affairs are managed in a way which takes into account the Group’s wider corporate reputation in line with Mettler Toledo’s overall high standards of governance.
Governance in relation to UK taxation
- Ultimate responsibility for Mettler Toledo’s tax strategy and compliance rests with the Board of Mettler Toledo Finance (UK) Limited;
- The Board ensures that the Group’s tax strategy is one of the factors considered in all investments and significant business decisions taken;
- The Finance Director is the Board member with executive responsibility for tax matters;
- Day-to-day management of the Group’s tax affairs is delegated to the Financial Controllers and Finance Directors of the individual entities within the business;
- The Financial Controllers and Financial Directors report to the Management of each Group entity;
- The Financial Controllers and Finance Directors receive support from the US based, in-house Group tax team (‘the tax team’) and also from external providers as required.
Risk Management
- Mettler Toledo operates a system of tax risk assessment and controls as a component of the overall internal control framework applicable to the Group’s financial reporting system;
- Mettler Toledo seeks to reduce the level of tax risk arising from its operations as far as is reasonably practicable by ensuring that reasonable care is applied in relation to all processes which could materially affect its compliance with its tax obligations;
- As part of the day to day management of the Group’s tax affairs, the Financial Controllers of each Group entity are responsible for identifying areas of tax risk and escalating these to the tax team;
- The Financial Controllers convene with the tax team at least twice per year to discuss general tax matters;
- The tax treatment of any significant transactions is reviewed by the tax team and approved by the Board of Directors;
- Advice is sought by the Financial Controllers from external advisers where appropriate.
Attitude towards tax planning and level of risk
Mettler Toledo manages risks to ensure compliance with legal requirements in a manner which ensures payment of the right amount of tax.
When entering into commercial transactions, Mettler Toledo seeks to take advantage of available tax incentives, reliefs and exemptions available in existing tax legislation. All transactions that Mettler Toledo undertakes have a commercial purpose.
The level of risk which Mettler Toledo accepts in relation to UK taxation is consistent with its overall objective of achieving certainty in the Group’s tax affairs. At all times Mettler Toledo seeks to comply fully with its regulatory and other obligations and to act in a way which upholds its reputation as a responsible corporate citizen. In relation to any specific issue or transaction, the Board is ultimately responsible for identifying the risks, including tax risks, which need to be addressed and for determining what actions should be taken to manage those risks, having regard to the materiality of the amounts and obligations in question.
Relationship with HMRC
Whilst Mettler Toledo does not have a Customer Relationship Manager at HMRC, the Group seeks to have a transparent and constructive relationship with HMRC as far as possible. HMRC is kept informed as appropriate in respect of developments in Mettler Toledo’s business, current, future and retrospective tax risks, and interpretation of the law in relation to all relevant taxes.
When submitting tax computations and returns to HMRC, Mettler Toledo discloses all relevant facts and identifies any transactions or issues where it considers that there is potential for the tax treatment to be uncertain.
Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.
Date approved: 2nd January 2023