Tax strategy

Introduction

This document is produced in accordance with the requirement under Section 161 and paragraph 16(2) Schedule 19 Finance Act 2016 for the Terberg Group to publish its UK tax strategy and sets out the group’s approach to tax.
The Terberg Group (“Group”) is a multi-national enterprise, conducting cross border trade with both third parties and Group members. As such tax has an impact on the business wherever it operates. The Group sees taxation as an important consideration at all levels, respecting the letter and spirit of the law in all areas of operation, and applying appropriate international standards (such as compliance with OECD Guidelines) to our conduct.
This policy applies to all individuals concerned with the tax affairs of the Group[1].

Tax Governance
Local financial controllers, or equivalent roles dependent on title, consider tax at entity level and report into Group with tax considerations. The leadership teams at entity level liaise regularly at both local entity level and with the board of Group to consider areas of risk and control.
• The directors of the entities are responsible for maintaining a system of     risk management/internal control supported by the local finance     
   director/controller. The Head of Legal and Tax together with the Group
   Controller assess whether the risks are properly managed and advise the
   local management of implementation of measures to mitigate any risks.
• The board of Group are advised of material tax disputes through
   updates provided to the board of Group by representatives from entity
   level, such as the entity CFO.
• The Finance departments of the entities are responsible to review the
   risks (which includes the tax risks) and report to the board in case risks
   are not properly mitigated. The Finance department is supported by the
   Group Head Legal and Tax and the Group Controller to assess the risk
   and design appropriate controls. On an annual basis the tax returns and
   tax risks are discussed with the entity’s tax advisors.
• Training is provided to internal staff to ensure tax compliance is carried
   out with a suitable level of diligence and technical expertise, where such
   work has not been outsourced.

Attitude to tax planning
The Terberg Group does not operate a contrived or artificial structure intended to circumvent profits to a low tax jurisdiction, and is co-operating in the spirit of tax transparency, fulfilling the requirements of Country-by-Country reporting, group member tax returns being filed on bases compliant with OECD guidelines.
• Attitude to tax planning is ultimately determined by the board of Group,
   following representations at entity level.
• The Group has not entered into any transactions which could be
   considered contrived, artificial or aggressive for tax purposes, nor does
   it have an appetite to do so in the future.
• The Group does not seek to achieve a target effective tax rate, neither as
   a Group nor at entity level, nor does it seek to manipulate profits to
   favour any tax jurisdiction.
• The Group ensures compliance with all laws and relevant regulations in
   the countries in which it operates, and makes full and timely disclosures
   in tax returns, reports, and documents submitted to taxing authorities.
• We operate in areas in which local governments offer tax measures to
   incentivise businesses, such as through research and development
   credits. These incentives are obtained by the Terberg Group where they
   are appropriate to the business and operation objectives of the Group.
   We do not operate in these areas with the sole or main aim being to
   achieve these incentives. The Boards at Ultimate Parent and all entity
   levels declare the relevant profits in the relevant countries after relief
   has been taken for the appropriate deductions and reliefs. Where there
   is an area of ambiguity in tax treatment, we are able to seek
   confirmation from the tax authority with full disclosure of the relevant
   facts.
• Cross-border transactions undertaken between Group subsidiaries are
   made on an ‘arm’s-length’ basis in accordance with the principles
   endorsed by the OECD. The Group holds transfer pricing documentation
   as directed by the OECD Action 13.

Tax Risk
This section considers an overview of the approach to tax risk management:
• The Finance departments of the entities are responsible to review the
   risks (which includes the tax risks) and report to the board in case risks
   are not properly mitigated. The Finance department is supported by the
   Group Head Legal and Tax and the Group Controller to assess the risk
   and design appropriate controls. On an annual basis the tax returns and
   tax risks are discussed with the entity’s tax advisors.
• When considering a significant transaction tax is only one of the many
   factors that we examine, and direct taxes on income and capital profits
   is just one part of the overall tax regime considered.
• Significant transactions are discussed with the Head of Legal and Tax
   and Group Controller in order to determine whether the transaction is in
   compliance with local and international law and regulations. Appropriate
   external advice is obtained from suitably qualified advisors.
• Given a number of alternatives, the lower tax cost may be implemented
   provided it is compliant with laws and relevant regulations, advantage
   being taken where possible of available tax incentives. Supporting tax
   documentation is prepared and maintained as required by law and,
   where necessary, to support a transaction or approach involving a tax
   impact.

Working with Taxing Authorities
Terberg Group maintains a respectful and professional working relationship with taxing authorities. The Group operates on the basis of full transparency, ensuring all disclosures are made on a timely basis.
Where issues arise we work co-operatively and pro-actively with the taxing authorities to find a resolution.

Notes
1 This policy applies to all UK entities within the Group which is parented by Terberg Group BV, and includes TRRG Holding Ltd, Terberg RosRoca Group Ltd, Dennis Eagle Ltd, Terberg Matec UK Ltd, Refuse Services Ltd, Ros Roca S.A.U (UK branch), Terberg Environmental UK Ltd, Terberg DTS (UK) Ltd and Cat 9 Ltd.

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