This document summarises Eaton Corporation PLC and worldwide subsidiaries’ (together known as “Eaton Group”) policy and approach to conducting United Kingdom (“UK”) tax affairs and managing tax risk. This document has been approved by Eaton Corporation PLC Board of Directors. This document will be reviewed annually and significant amendments will be approved by the Eaton Corporation PLC Board of Directors.
Compliance with UK tax laws, rules and regulations
Eaton Group respects and obeys the laws, rules and regulations for all jurisdictions where Eaton Group operates. This is in alignment with the Eaton Code of Ethics. As such, Eaton Group is committed to observing and complying with all applicable UK tax laws, rules and regulations. Eaton Group is committed to timely paying of taxes that are legally due in the UK.
The approach of Eaton Group to the governance and risk management of UK tax matters
Eaton Group establishes internal financial policies requiring UK businesses to comply with all applicable UK tax laws and deploys an internal review process to ensure that this policy is followed on time and accurately. Additionally, Eaton Group’s implementation and interpretation of UK tax matters are reviewed by external financial auditors and other tax advisers.
Attitude of Eaton Group toward UK tax planning
Eaton Group does not engage in artificial tax arrangements. Eaton Group UK tax planning supports UK commercial strategies and economic activities. Transactions between Eaton Group companies are conducted on an arm’s-length basis and in accordance with UK tax laws.
The level of risk that Eaton Group has in relation to UK taxation
Eaton Group’s UK tax planning strategies are deployed only when it is more likely than not that the tax positions will be sustained upon audit. Eaton Group assesses UK tax risk on an ongoing basis. Where transactions are complex or the tax law is uncertain, external advice is usually sought. Eaton Group’s external financial auditors also play an active role in reviewing the tax implications of transactions as they are implemented.
Approach with Her Majesty’s Revenue and Customs (“HMRC”)
Eaton Group is committed to:
Eaton Group’s publication of its UK tax strategy is applicable to all Eaton UK companies. Eaton Group regards this document as complying with its responsibility under the Financial Act 2016, Schedule 19, paragraph 19(2).
For the financial year ending 31 December 2020