UK Tax Strategy
This UK tax strategy disclosure applies to the following UK subsidiaries of Mitsui O.S.K Lines, Ltd., ("MOL Japan" and collectively the "MOL Group"), of which MOL Japan is the ultimate holding company:
- MOL (EUROPE AFRICA) LTD
- M.O. TOURIST CO., LTD.
- MOL LOGISTICS (UK) LTD.
- MOL (EUROPE) LIMITED
- MOL CHEMICAL TANKERS EUROPE LIMITED
- MOL LNG TRANSPORT (EUROPE) LIMITED
- MOL OFFSHORE ENERGY LIMITED
- MOL TANKSHIP MANAGEMENT (EUROPE) LTD.
- N.S.A. U.K. LIMITED.
The MOL Group has established corporate principles to enable the group to actively contribute to global economic growth and development and strive to maximize corporate value through creativity, operating efficiency and the promotion of ethical and transparent management. The Group has also introduced rules of conduct requiring all personnel to observe the laws and regulations of Japan and all other nations, and act in accordance with social standards and corporate ethics while at all times exercising due caution. In accordance with the rules, the group endeavors to make a positive contribution towards the realization of a better society as a good corporate citizen in international society and communities.
The group's UK tax strategy reflects these values and is based on actively contributing to economic growth through compliance with all applicable UK tax laws, regulations and local practices.
- (1) Risk management & governance
Day-to-day tax procedures are performed locally and the UK group is supported by external advisors tasked with preparing or reviewing UK corporation tax returns, as appropriate.
UK management may consult with management of other MOL Group subsidiaries and may report to and seek approval from the management of MOL Japan concerning major tax compliance matters or areas of tax uncertainty, on a case-by-case basis. Additionally, external tax advisors are engaged to provide advice on complex matters.
- (2) Tax planning
The MOL Group pays all taxes due in the UK and does not enter into artificial tax planning arrangements with the aim of avoiding tax. To the extent permitted by the law, the MOL Group utilizes UK tax incentives aimed at promoting economic growth and investment, including capital allowances and group relief for losses. The group also manages its exposure to double taxation, including any double taxation resulting from its UK activities.
- (3) Risk tolerance
The group makes decisions involving UK tax matters on a case-by-case basis taking into consideration relevant tax risks. Each issue is therefore considered on its own merits without rigid levels of acceptable risk, based on consultation with other MOL Group subsidiaries, the management of MOL Japan, or external tax advisors or HMRC, whenever appropriate.
The group's internal processes, including its rules of conduct, help ensure that tax risks in the UK are appropriately managed.
- (4) Relationship with HMRC
The MOL Group strives to maintain a positive relationship with HMRC and is willing to make voluntary disclosures to the tax authorities whenever this is appropriate. The group seeks to resolve significant uncertainties surrounding the interpretation of tax laws based on a timely and open dialogue with HMRC, usually supported by its external tax advisors.
The publication of this strategy statement is regarded as satisfying the requirements under Paragraph 16(2), Schedule 19, Finance Act 2016. The tax strategy statement relates to our financial year ending 31st March 2022.