GROHE in the UK Tax strategy and strategic objectives
GROHE Limited (GROHE UK) was established in the United Kingdom on 14th August 1963 and is part of the GROHE Group world wide organization. GROHE is a leading global brand for complete bathroom solutions and kitchen fittings and dedicated to providing innovative water products.
Tax strategy and strategic objectives
This document is in compliance with the duty of GROHE UK to publish its Tax Strategy as it relates to UK taxation in accordance with the Schedule 19 of the Finance Act of 2016 for the financial year ended 31 March 2023.
GROHE UK’s tax strategy and strategic objectives are intended to establish a clear and unequivocal approach to all aspects of tax reporting and compliance.
The tax strategy is focused on ensuring that taxes (and tax risks) are managed to provide outcomes consistent with commercial reality and are within the parameters of the Group’s strategic objectives. The strategy also requires that all tax obligations are complied with in the UK and other relevant jurisdictions.
With the tax landscape constantly changing, GROHE UK’s tax affairs and tax risk management procedures are regularly reviewed to ensure that processes and measures are up-to-date so that we are able to identify, assess, manage and mitigate tax risk as well as being aligned with the GROHE Group’s business strategy and governance framework.
Tax risk management and risk appetite
The day to day management of GROHE UK tax affairs is provided by the UK finance team with support from the GROHE HQ.
Processes relating to different taxes are allocated to appropriate specialist functions within the tax team who carry out a review of activities and processes to identify key risks and mitigating controls in place. These key risks are monitored for changes in business and legislation and processes and controls are updated accordingly.
GROHE seeks to reduce the level of tax risk arising from its operations as far is practically reasonable by implementing various internal tools for the various business units to follow.
GROHE UK utilises tax reliefs and allowances available in the manner in which intended by HM Revenue & Customs and statute. If, however, there are circumstances where this amount may not be clearly defined, or where alternative approaches may result in differing tax outcomes the Group will use its best judgment in determining the appropriate course of action, using available reliefs and incentives where possible and liaising with HMRC where appropriate.
GROHE UK does not engage in artificial tax arrangements and ensures that the outcomes are consistent with commercial realities.
GROHE UK’s appetite for tax risk is low and we only structure our affairs based on sound commercial principles and in accordance with the GROHE Group policy and relevant tax legislation. Aggressive tax planning is not proactively considered and external advice is sought where appropriate.
Relationship with HMRC
It is GROHE UK’s general policy to be transparent and proactive in all interactions with HMRC through regular meetings and communications with HMRC.
We have an open, honest and positive working relationship with HMRC. We are committed to prompt disclosure and transparency in all tax matters with HMRC. We recognize that there will be areas of differing legal interpretations between ourselves and HMRC and where this occurs we will engage in proactive discussion to bring matters to as rapid a conclusion as possible.
Any inadvertent errors in submission of tax returns and tax computations to HMRC are fully disclosed as soon as reasonably practicable after they have been identified.
Issue Date: 16th February 2023 – relating to Financial Year Ending 31 March 2023