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May 01, 2022

Tax Strategy of Chervon UK

Chervon Group is a global integrated solution provider that specializes in the R&D, manufacturing, testing, sales and after-sale services of power tools, garden tools and related products. Chervon Group has operations in numerous countries globally by setting up local legal entities, including those in the UK (hereafter refers to, “Chervon UK”).

Required by UK law, Chervon UK publishs its tax strategy online in relation to UK taxation on an annual basis. The Chervon Group’s UK tax strategy has been hereby published in accordance with paragraph 16(2) of Schedule 19 (“the Schedule”) to Finance Act 2016 and relates to our accounting period ended 31 December 2021. This document applies to all Chervon UK entities in accordance with paragraph 19 of the Schedule.

‘UK taxation’ refers to taxes and duties in the UK that Chervon UK may be subject to during the course of carrying on business locally, which include but are not limited to:
All corporate income taxes
Indirect taxes (VAT, Stamp Duty Land Tax)
Employment taxes (PAYE / National Insurance / Construction Industry Scheme)
Other applicable tax matters
This tax strategy applies from the date of publication until it is superseded.

The focus of Chervon Group’s tax strategy is to ensure that it remains compliant with the relevant and applicable tax laws in each jurisdiction where it operates. The submission of tax filings and remittance of tax liabilities on a timely basis forms a key part of this strategy.
Further details relating to the tax strategy are provided below.

Governance in relation to UK taxation
Tax strategy of Chervon UK is aligned with that of the ultimate parent company of the group. The Group’s Global Finance Director has day-to-day responsibility for the management of the Group’s tax affairs and reports to the CFO. The Board of Directors of Chervon Group thereof monitors the Group’s tax strategy and receives periodic updates relating to tax matters from the CFO and the Finance Director. Local management of each legal entity is responsible for ensuring that all applicable regulations as well as internal guidelines and governance procedures relating to taxation are observed.

Risk Management
Chervon UK proactively identifies and manages its tax risks and monitors changes in tax law and practice. The finance department actively seeks to identify, evaluate, manage and monitor these risks to maintain compliance and protect the business reputation of the group. Chervon UK seeks to ensure that the companies pay the correct amount of tax and meet local disclosure and filing requirements. The finance department employs qualified and trained professionals to identify uncertainties and ensure risks are fully assessed. The finance department can also seek the guidance of external advisors where appropriate. The external advisors have tax teams in many jurisdictions that are accessible to our internal tax department. And our tax department has the ability to cooperate with them to reduce the group’s global tax risks arising from its operations, as far as is reasonably practicable, by ensuring that due care is taken in relation to processes that affect its compliance with tax obligations.  

Attitude of Tax Planning
Chervon Group will always observe laws and regulations and act fairly in all circumstances. In line with the Group’s approach to taxes, Chervon UK believes that a certain degree of tax risk and uncertainty is unavoidable in the increasingly complex international environment. Chervon UK does not undertake transactions without a business purpose or commercial rationale. Furthermore, as a matter of principle, Chervon Group aim to comply with all relevant tax rules and regulations of the countries in which they operate, as well as complying with international standards of tax rules.
Chervon UK aims to follow the Letter and Spirit of the law on all matters related to taxation. The tax implications of all significant transactions are thoroughly analyzed, with the support of external tax advisors when necessary, and potential outcomes are forecasted based on the rules and regulations in force at the time.
When achieving the desired commercial result, the most tax efficient outcome will be considered; however, Chervon Group as a responsible global corporate citizen, does not engage in any form of aggressive tax planning. As a general rule, any tax planning is aligned to the commercial business activities, and the final decision should base on the commercial needs of the company or group.

Relationship with HMRC
Chervon UK seeks to maintain an honest and transparent relationship with HMRC, and any interaction will be in a cooperative manner. We aim to demonstrate honesty, care and integrity in all our relationships. Where tax laws or obligations are unclear, or subject to interpretation, we engage with external tax advisors to ensure we remain fully compliant in all operations. Where applicable, we will work with HMRC to attempt to resolve any differences in a timely and professional manner.