Our Tax Policy

Introduction

This sets out the tax strategy of Konica Minolta Business Solutions UK (Ltd) and its UK subsidiary undertakings (the “Group”), and in making this strategy available the UK Group is fulfilling its responsibilities under Schedule 19 of the Finance Act 2016

This tax strategy applies to all UK taxes applicable to the Group and the document is owned and approved by the Board of Directors of Group (“the Board”) 
Konica Minolta Group takes its duty of making the appropriate tax payments seriously, recognising its importance, fulfils its responsibility as a member of society through its company activities, and contributes to the development of the communities in which it operates. In addition, we act and fully understand the importance of transparency including the reporting and exchange of information on tax matters and the cooperation with tax authorities.
 
Strategic Tax Objectives

1. Engage with tax authorities in an open and transparent way in order to minimize uncertainty. This is best achieved by adopting prudent and recognized filing positions.
2. Pro-actively partner with the business to provide clear, timely, relevant and business focused advice across all aspects of tax. Konica Minolta aim to ensure that the business understands the group tax department’s objective of minimizing exposure to tax risk and the means of achieving this.
3. Take an appropriate and balanced approach when considering how to structure tax-sensitive transactions. Where alternative routes exist to achieve the same commercial result the most tax efficient approach in compliance with all relevant laws should be considered.
4. Manage Konica Minolta’s tax risk by operating effective tax governance and understanding our tax control framework with a view to continuously adjusting our approach to be compliant with our tax obligations.

 
Engaging with HMRC

In its dealings with HMRC, the Group will act in an open, honest and transparent manner. The Group’s strategic aim is to avoid unnecessary disputes with HMRC and thus minimize tax risk. We aim to achieve this by:

• outsourcing the complicated tax compliance matters to professional consultants
• seeking assistance of professional tax professionals acting as our agents in dealings with HMRC,
• making the tax compliance procedures and controls available for review by HMRC upon request
• where appropriate, seeking pre-transaction clearances from HMRC.

 
 
Managing Tax Risks

Effective risk management is paramount for the Group and underpins its business strategy. The Group’s ongoing approach to UK tax risk management and governance is based on the principles of reasonable care and materiality, while considering both financial and non-financial factors.
We acknowledge the importance to compliance with tax regulations and treat the management of tax risks seriously. Consequently, we maintain on-going application of tax governance with strong internal controls in order to substantially reduce tax risk to materially acceptable levels.
As part of this governance, we have a CFO and Head of Operational Finance who oversee the Group’s accounting processes, assesses compliance with ongoing tax regulations and escalates any identified risks to the board. We also have an internal audit function that supports this activity. Identified risks are maintained on tax risk registers and their materiality assessed regularly.
 
 
Tax Planning

Konica Minolta Group engages in efficient tax planning that reflects the commercial activity of our business. We do not engage in artificial tax arrangements. We do not abuse tax havens as a method of tax evasion and act with a resolute mindset to be a responsible taxpayer.
 
Konica Minolta group recognizes the importance of transfer pricing as being arm’s length and as a means of ensuring tax payments are made appropriately to locations that contribute value and is committed to ensuring compliance with tax regulations and the related requirements for the timely filing of tax returns and the making of tax payments. Accordingly, in support of the OECD global tax policy on Base Erosion and Profit Shifting (BEPS), we have put in place a mechanism to effectively collect and monitor global tax information, and through this system, enhanced our tax governance activities.
 
Konica Minolta Group supports the principles and reforms for the appropriate international taxation with greater transparency that OECD and G20 promote and we act on that premise.
 
We observe and comply with relevant tax law and seek to minimize the risk of uncertainty or disputes in relation to tax matters.
 
Governance

The Konica Minola Inc. Group Head of Tax owns and implements the Konica Minolta Group Tax Policy and ensures that the skill and the knowledge base of tax staff is updated, and the necessary information is shared on a timely basis in Konica Minolta Group. The tax department also conducts training programs for management and hold a Global conference on finance and accounting to emphasize the importance of the Group Tax Policy, exchange opinions and provide updates on necessary tax information and current knowledge concepts.
 
Konica Minolta Group has strict internal control processes, in accordance with the Japanese Sarbanes-Oxley framework, including controls over compliance processes. These controls are monitored on a quarterly basis for effectiveness.
 
Commitment to compliance

Konica Minolta are committed to compliance with tax law and practice in the UK. Compliance for Konica Minolta means paying the right amount of tax in the right place at the right time. It involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.

Konica Minolta Business Solutions (UK) Limited 2023