Kia's Tax Strategy | Kia UK
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TAX STRATEGY

In accordance with Paragraph 22(2) Schedule 19 of the Finance Act 2016, Kia UK Ltd sets out its tax strategy for its UK operations. UK tax policy ultimately lies with the CEO & President of Kia UK Ltd. This tax strategy has been fully approved by the Company’s Board of Directors. The tax strategy set out below applies from the date of publication until it is superseded.

Risk Management and Governance Arrangements

Kia UK Ltd has an absolute commitment to full compliance with all relevant laws, rules, regulations and disclosure requirements. Governance of the Company, and therefore tax risk management and policies, sits with the Board of Directors and is safeguarded by a robust internal control system.

Tax risks are actively identified and assessed on an ongoing basis, utilising the skills and experience within the tax department, as well as external tax advisors. Commercial changes within the business will be scrutinised by the Finance Director and the tax department for associated risks. Any tax risks identified are reviewed by the Finance Director and are reported to the Board of Directors to be evaluated.

Where any tax risks will have an impact further than just the UK, these will be reported to Kia Europe GmbH, based in Germany, as well as the Kia Corporation group in Korea for further assessment and evaluation.

Tax reporting is supported by a regular review process both internally, and externally, utilising the Company’s relationship with high quality accounting firms to ensure that accurate and timely reporting is maintained.

Tax policy is fully aligned with the ethical standards and core values of the business.

Attitude of the business towards tax planning

Kia UK Ltd will not engage in any form of tax planning other than that which is compliant with law and supports the businesses commercial aims.

Where commercial activities and transactions are structured in ways in which create differing outcomes for tax purposes, the Company will not put in place any arrangements that are contrived or artificial.

In the event that there is any risk or doubt that the arrangement structure of the activity could be contrary to tax law or in any way perceived in that way, then the business will utilise expert tax advice and, where appropriate, enter into transparent dialogue with HMRC.

Level of risk that Kia UK Ltd is willing to accept in relation to UK taxation

The Company’s aim is at all times to minimise level of risk in relation to UK taxation. The Company is not willing to accept a level of risk that could harm its reputation in the eyes of its stakeholders, or that adversely impacts on its relationship with HM Revenue & Customs.

To ensure that the tax risk to the Company is maintained at as low level as possible, a number of risk management policies and governance arrangements are in place, including internal controls that must be adhered to as well as internal and external tax reviews of new commercial actions or processes.

Relationship with HM Revenue & Customs

The Company prides itself on an honest, transparent and collaborative relationship with HMRC. The Company has complete commitment to a full and accurate disclosure in tax returns and its correspondence with HMRC.

Kia is committed to comply with all tax legislation, regulations and obligations. If any disagreements or issues arise with regards to tax or the interpretation of tax law, this will be proactively discussed with HMRC. The Company fully co-operates with HMRC where any further information or clarification is required.

Where a tax liability arises and tax is due, payment is made to HMRC in a timely and efficient manner.