30 June 2024

The publication of this statement is in accordance with the statutory requirements under Paragraph 22(2) Schedule19 of UK Finance Act 2016. This statement applies to Prinova UK entities (Prinova Europe Limited and Prinova Solutions Europe Limited) as of 31 December 2023, and has been approved by the Prinova Group Board of Managers.

We, Prinova group, are committed to complying with all applicable laws, rules and regulations in meeting our tax compliance and reporting responsibilities, whilst simultaneously managing our regional tax expenses. We do not adopt artificial arrangements or structures for the purpose of tax avoidance.

Prinova Europe Limited, the parent company to Prinova Solutions Europe Limited, is ultimately owned by Nagase & Co. Ltd., a Japanese company quoted on the Tokyo Stock Exchange. The tax compliance team from Nagase have oversight across all entities in the Group and they support the UK team as much as practicable.

The Prinova UK Group is responsible for ensuring that UK tax risk is managed appropriately and meets the wider Nagase Group’s overall attitude towards acceptable levels of risk. The overall aim of the Group is to manage and reduce any tax risk across all taxes to an acceptable level. Material transactions are therefore reviewed for tax risk by the Group tax and legal teams where necessary.

External qualified advisors that are competent with the required knowledge in each area of taxation are used to ensure compliance with local tax legislation and to mitigate any tax risk arising.

Transactions within the UK Group are commercially driven in line with the wider Nagase Group’s governance policies. Any tax risks arising from these commercial decisions are managed within the commercial and reputational objectives of the UK Group and wider Nagase Group.

1.   Tax compliance

We are committed to complying with all applicable laws, rules and regulations in meeting our tax compliance and reporting responsibilities, including engaging in open and constructive relationships with tax authorities. We aim to demonstrate our commitment to high integrity and ethical values in our dealings with the tax authorities.

2.  Tax management strategy

The Finance Directors of our UK entities oversee the management of tax, and the Controllers within the accounting departments are assigned to ensure that we comply with tax regulations on a day to day basis. We have also retained external tax consulting firms to assist with the preparation of our tax returns and determining our annual corporate tax liabilities in accordance with the relevant legislations. These firms help us to ensure that we are up to date with regard to  applicable tax regulations. Legislative reliefs available are considered where applicable, for instance, to eliminate double taxation. However, the business will not enter into transactions or undertake tax planning that is not driven by a commercial purpose.

3.   Level of risk prepared to accept

The business accepts a low level of tax risk. When it is discovered that there is a risk associated with any tax regulation, we consult with professional tax advisers to assess the level of risk, and then take necessary action to eliminate or minimize the risk.

Where needed, we obtain guidance and direction from our ultimate parent company (Nagase & Co. Ltd.,) tax department.

4.  Approach towards our dealings with HMRC

We aim to establish and maintain transparent, collaborative and professional relationships with tax authorities. Accordingly, we fully cooperate with HMRC and act with integrity and transparency.