SWAROVSKI CRYSTAL BUSINESS (“SCB”)
Title:OUR APPROACH TO TAX
Subtitle:
Founded in 1895 by Daniel Swarovski, Swarovski has grown to become a large Multinational Group of companies and a global market leader within the crystal industry.
As a family-run, independent business with a history of more than 120 years, we aim for our tax affairs to be sustainable, well governed and transparent.
Paragraph 16(2), Schedule 19, Finance Act 2016 requires Swarovski to set out the tax strategy of its UK companies and this is detailed below.
Tax strategy
We recognize that paying taxes arising from our activities is an important part of how our businesses contribute to the welfare of societies in which we operate.
Tax Management and Governance
Within SCB, we have a centrally organized in-house tax department consisting of tax professionals. The tax department is supported by local staff and external service providers.
While the tax department manages SCB’s tax affairs, it is the businesses that ensures that tax aspects are considered when making business decisions. The ultimate oversight on tax matters and tax risk resides with the Swarovski Executive Board.
Tax Planning
SCB does not enter into any aggressive tax planning or support the use of artificial structures that are established to avoid paying tax and have no business purposes.
We support the implementation of business decisions by ensuring that all applicable tax laws and regulations are complied with and the profits are offered to taxation where the economic activity generating them takes place.
Professional advice is sought on a transaction-by-transaction basis from independent reputable firms, if deemed appropriate.
Level of risk that we are prepared to accept
We do not engage in high risk transactions. However, as a multinational corporation, we accept a certain level of risk due to uncertainties in tax legislation and the increasing complexity of the international tax environment, particularly with regard to transactions between our affiliated companies.
Approach towards dealing with Tax Authorities
In order to avoid uncertainties in the tax treatment of transactions we actively seek tax administrations’ confirmation on the correct application of tax laws, fully disclosing the relevant facts.
To this end, we also employ agreements between tax administrations of different countries on the methods to calculate the prices for goods sold or services rendered from a SCB entity operating in one country to another SCB entity operating in another country.
As a family-run, independent business with a history of more than 120 years, we aim for our tax affairs to be sustainable, well governed and transparent.
Paragraph 16(2), Schedule 19, Finance Act 2016 requires Swarovski to set out the tax strategy of its UK companies and this is detailed below.
Tax strategy
We recognize that paying taxes arising from our activities is an important part of how our businesses contribute to the welfare of societies in which we operate.
Tax Management and Governance
Within SCB, we have a centrally organized in-house tax department consisting of tax professionals. The tax department is supported by local staff and external service providers.
While the tax department manages SCB’s tax affairs, it is the businesses that ensures that tax aspects are considered when making business decisions. The ultimate oversight on tax matters and tax risk resides with the Swarovski Executive Board.
Tax Planning
SCB does not enter into any aggressive tax planning or support the use of artificial structures that are established to avoid paying tax and have no business purposes.
We support the implementation of business decisions by ensuring that all applicable tax laws and regulations are complied with and the profits are offered to taxation where the economic activity generating them takes place.
Professional advice is sought on a transaction-by-transaction basis from independent reputable firms, if deemed appropriate.
Level of risk that we are prepared to accept
We do not engage in high risk transactions. However, as a multinational corporation, we accept a certain level of risk due to uncertainties in tax legislation and the increasing complexity of the international tax environment, particularly with regard to transactions between our affiliated companies.
Approach towards dealing with Tax Authorities
In order to avoid uncertainties in the tax treatment of transactions we actively seek tax administrations’ confirmation on the correct application of tax laws, fully disclosing the relevant facts.
To this end, we also employ agreements between tax administrations of different countries on the methods to calculate the prices for goods sold or services rendered from a SCB entity operating in one country to another SCB entity operating in another country.