This document sets out the UK Group’s policy and approach to conducting its tax affairs and dealing with tax risk, and is published in accordance with paragraph 16(2) Schedule 19 Finance Act 2016.
This tax strategy relates to the 52 weeks ending 3rd November 2019 and applies to all UK taxes applicable to the UK Group. The document has been approved by the Board of Directors of John Deere Limited.
The UK Group is headed by John Deere Limited and comprises the following legal entities:
The ultimate parent company of the UK Group is Deere and Company, a US listed company. The UK group adheres to the Core Values put in place by the founder, John Deere. Those Core Values are Integrity, Quality, Commitment and Innovation. These values are the true essence of how the group works and are in every product, service and opportunity offered to its customers, suppliers, employees and investors.
John Deere is committed to conduct its tax affairs in line with the following:
With the tax landscape constantly changing, the UK Group is committed to ensuring that all laws, rules and regulations are adhered to. The UK Group uses professional advisers to help ascertain tax risks whenever it considers that such advice is necessary.
Day to day tax matters are the responsibility of the Financial Controllers of the respective UK companies.
The UK directors are fully involved in any decisions in relation to any areas of actual and potential tax risk.
As the parent company is a US listed company, the whole group (including the UK companies) are subject to the Sarbanes-Oxley Act. This Act was introduced by the US Government to improve corporate governance and accountability. Tax risk is mitigated by the UK Group through the implementation of Sarbanes-Oxley, as detailed in the following activities:
Quarterly reporting of tax figures to the US ensures that any tax issues are brought to the attention of the US Treasury and Finance function.
The UK Group does not use artificial tax avoidance schemes or tax havens to reduce the group’s tax liabilities.
The UK group does not interpret tax law in a way which may be against the spirit of that law. The group uses professional advisers to assist it in determining the spirit of the law.
The group’s aim is to pay the correct amount of tax to the UK tax authority.
In reviewing the tax risks of any proposed action or decision, the Core Values are taken into consideration in conjunction with the following:
The UK Group works closely with its Customer Compliance Manager in relation to current, future and past tax issues.
Clearance from HM Revenue and Customs is sought for any significant business transactions which are not in the nature of normal trading.