Mazda Tax Stategy
Mazda is a global automaker whose principal activity is the global sale of motor vehicles. Mazda Motors UK Ltd is a wholly owned subsidiary of Mazda Motor Corporation (global parent company) based in Hiroshima, Japan. This tax strategy is set out to explain the tax arrangements for Mazda UK operations and any future reference to Mazda within this policy will be reference solely to Mazda UK tax affairs.
UK Taxation Risk Management and Governance
Mazda consider the accurate, timely and fully transparent payment of taxation to be of the utmost importance. We have a duty to ensure that tax governance is robust and tax risk is minimised. The following details the structure that support Mazda UK tax governance and risk management;
- Mazda’s tax policy in Europe ultimately resides with Mazda Motor Corporation
- Mazda tax arrangements within the UK are the ultimate responsibility of the Board of Directors of Mazda Motors UK Ltd
- The Finance Director is the Senior Accounting Officer for Mazda in the UK and as a result, has operational responsibility for Mazda UK tax arrangements
- Day-to-day management of Mazda tax affairs is managed by suitably qualified and resourced members of the accounting team
- Mazda has a comprehensive and well established internal control framework. Identifying, carefully managing and mitigating tax risk is a critical part of this internal control framework. We continuously monitor and regularly review all of our internal control processes, including annual internal and external audits.
- Mazda is audited by external auditors, KPMG LLP, on a quarterly basis to ensure the accuracy and completeness of our financials and our tax calculations are accurate, complete and fully disclosed to ensure that the right amount of tax is paid to HMRC.
Attitude towards tax planning
Mazda do not enter into tax planning other than that which is necessary to ensure that the right amount of tax is paid. Mazda have had a low UK tax risk rating for 6 years as determined by the HMRC Business Risk Review process, and we continue to work closely with HMRC to maintain this low risk rating. It is considered our corporate and ethical responsibility to pay the appropriate amount of tax in accordance with tax regulations and in keeping with the spirit of tax laws and legislation. We have a comprehensive corporate code of conduct policy that requires regular mandatory training to ensure that expected behaviour is reinforced and firmly embedded within the Mazda culture across all global entities.
Our low risk rating is a reflection of our tightly controlled internal processes, our transparent approach and our relatively simple business structure within the UK. External tax advice may be obtained on rare occasions when matters are of a significantly complex or uncertain nature, in order to ensure that the appropriate amount of tax is paid in a timely and accurate manner.
Level of acceptable tax risk
Our aim is to minimise the level of risk in relation to UK taxation at all times. It is extremely important to Mazda to not enter into any tax planning arrangements that would bring into question our brand, reputation, corporate and social responsibilities, or affect our positive relationship with HMRC. It is, however, inevitable that some small elements of tax risk may arise. To ensure that the tax risk is kept to as low a level as possible, Mazda has a number of risk management policies and governance arrangements in place and has firmly embedded and tightly managed internal controls around all elements of taxation.
Relationship with HMRC
Mazda maintains a positive, open and honest relationship with HMRC. We regularly engage with our Customer Relationship Manager (CRM) and proactively discuss any complex tax related matters with HMRC to ensure that we are fully transparent, avoid uncertainty, maintain integrity and undertake activity in the spirit of cooperation.
This strategy applies to Mazda UK Ltd in accordance with satisfying statutory obligations under Paragraph 16(2), Schedule 19 of the Finance Act 2016.