The following document sets out
The company manages its tax affairs based on 5 core principles:
The fundamental principle underlying all the tax decisions within the
2. Open and transparent approach to engaging with HMRC
HMRC is kept informed about business developments to the extent they have a tax impact through regular correspondence. We will always seek to disclose all relevant facts to HMRC to enable them to understand fully the issue in question, and to enable the correct tax treatment to be applied.
In the event that a disclosure is required, these are made voluntarily or with full co-operation from the business.
3. Management of Tax
Ultimate responsibility for the tax affairs of each company sits with the Board of Directors. The Board has assigned the Financial Controller with overall responsibility for its ongoing tax affairs. The financial controller is the nominated Senior Accounting Officer for Tax Purposes.
The company closely with external advisors to ensure tax risk is adequately managed and that the company remain up to date with the latest tax changes that may affect the business.
4. Risk Management
Given the size and global nature of our business, tax risks will arise. The individuals responsible for tax are appropriately skilled to handle these matters and receive regular tax updates to ensure knowledge is always up to date. This enables the teams to identify, monitor and manage tax risks within the business. External advisors are used to help manage the risk and ensure that the company meets its tax obligations. Advisors are also used to assist the business in achieving its core tax principles as outlined in this document.
5. Attitude to arranging our tax affairs
The primary tax objective of the company is to pay the correct amount of tax at the point at which it is properly due. The company will utilise exemptions and reliefs that are legitimately available and in accordance with the wording and spirit of the law.
The company is mindful of its reputation in the marketplace and seeks to operate in a manner of a responsible taxpayer.
Transactions between group companies are conducted on an arm’s-length basis and in accordance with OECD principles. The group do not undertake profit allocation on the basis of tax rates, and profit follows the business activities of the group.
Where tax incentives are implemented by the Government to support investment, employment and economic development,
Engagement in artificial tax arrangements (those without commercial substance) is not undertaken. Where a point is unclear or uncertain, the companies may seek clarification from HMRC, external advisors or the judiciary as appropriate. This is done in order to ensure that the companies comply with their primary tax objective. Tax is not the commercial driver for decision making within the company nor a key performance indicator.
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* Data determined in accordance with the measurement method required by law. Since 01 September 2017 certain new cars have been type approved in accordance with the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a more realistic test procedure to measure fuel consumption and CO₂ emissions. From 01 September 2018 the WLTP will replace the New European Driving Cycle (NEDC). Due to the more realistic test conditions, the fuel consumption and CO₂ emission values determined in accordance with the WLTP will, in many cases, be higher than those determined in accordance with the NEDC. This may lead to corresponding changes in vehicle taxation from 01 September 2018. You can find more information on the difference between WLTP and NEDC at www.porsche.com/wltp.
Currently, we are still obliged to provide the NEDC values, irrespective of the testing method used. The additional reporting of the WLTP values is voluntary until their obligatory use. As far as new cars, (which are type approved in accordance with the WLTP) are concerned, the NEDC values will therefore be derived from the WLTP values during the transition period. To the extent that NEDC values are given as ranges, these do not relate to a single, individual car and do not constitute part of the offer. They are intended solely as a means of comparing different types of vehicle. Extra features and accessories (attachments, tyre formats etc.) can change relevant vehicle parameters such as weight, rolling resistance and aerodynamics. Additionally, weather and traffic conditions, as well as individual handling, can affect the fuel consumption, electricity consumption, CO₂ emissions and performance values of a car.