Tax Strategy

This tax strategy of SANY Heavy Machinery (UK) Ltd (“SANY UK”) is published for the current financial year starting on 1 January 2023 to 31 December 2023 in accordance with paragraph 19 of Part 2 of Schedule 19 of the UK Finance Act 2016.

Our overall tax strategy is to:

• Meet all legal requirements and to make all appropriate tax returns and tax payments;
• Consider the tax impact in major or complex business decisions;
• Operate in an environment where we consider tax in the context of our reputation and brand;
• Comply with appropriate tax risk processes and ensure there is Board oversight into this compliance.

Risk Management and Governance

SANY UK is committed to operating and conducting its tax affairs in compliance with relevant UK tax laws and practices, as well as complying with OECD guidelines. In all commercial activities, Sany Group takes into account the tax laws of the countries in which it operates and does not enter into any artificial arrangements for the purposes of tax avoidance. 

Global tax guidance and codes of conduct published by SANY Group is implemented and followed by SANY UK thoroughly. Our systems, processes and internal controls are monitored and tested annually to ensure assurance to the company’s management.

Tax uncertainties are monitored, documented, and reported to the Board on a regular and timely basis.

Sany’s Chief Financial Officer and Global Head of Tax are responsible for global tax risk and tax strategy. The Audit Department of Sany Group assists the Board of Directors in fulfilling its oversight responsibilities to the shareholders in relation to the Sany Group’s risk identification, assessment, and management programs.

The Sany Group tax management and governance consists of three components, the international tax team of Finance Headquarters of Sany Group, the international tax team of Business Units, and finance manager and financial team of subsidiaries.

In the event of any uncertainty or complexity of business activities where potential UK tax issues may arise, the Head of Tax at SANY Group, with Board of Director approval, will engage with their external UK tax advisors.

Attitude to Tax Planning

SANY UK always considers the appropriate amount of tax due according to where value is created within the normal course of business activity. Transfer pricing is always calculated using the arm’s length principle. We ensure the right and accurate amount of tax is paid in UK on time without any intention of using any forms of aggressive tax planning which may be contrary to legislation.

We do not undertake aggressive tax planning or enter into artificial arrangements, the sole purpose of which would be obtaining a tax advantage. We have a responsibility to minimise our tax risk and our exposure to negative publicity through non-compliance.  In addition, for any complex or judgemental UK tax matters, SANY UK would engage with their external UK tax advisors to seek a clear understanding of the legislation and opinion on the matter.

Level of Risk

SANY UK’s appetite for risk, in respect of both UK and global taxes, is low. We actively evaluate and monitor risks that may rise within the business sectors given the current economic environment worldwide and domestically and seek advice from external tax advisors with regards to changes to UK tax laws which may have impact on the business.

SANY UK endeavours to be honest and fair in all of our dealings and to engage with the UK tax authorities in an open and transparent way to minimise uncertainty. When issues arise, SANY UK aims to be proactive with the UK tax authorities to ensure resolving the issues efficiently. 

We have relationships with professional tax advisers that allow us to seek expert advice on specialist areas of tax. Our approach is to ensure we are compliant and understand our responsibilities with regards to UK tax, rather than looking for ways to aggressively avoid payment of tax.

Interaction with HMRC

SANY UK aims to have an open, transparent, and trusted relationship with HMRC. We ensure any query, information and requests received from HMRC is responded in a timely manner. We commit to making accurate and timely disclosure in tax returns and correspondence and working proactively with HMRC to resolve any disagreements where possible.

SANY Heavy Machinery (UK) Ltd is part of the SANY Group of companies www.sanyglobal.com