Arxada is a global science-based specialty chemicals business, headquartered in Basel, Switzerland. With customers in more than 100 countries, Arxada aims to solve the world’s toughest preservation challenges by striving to enhance sustainability with cleaner, greener chemistries and solutions. Its broad portfolio of microbial control solutions and differentiated specialty chemicals are supported by exceptional regulatory capabilities and operational excellence in both manufacturing and process development worldwide. With diverse end-markets, primarily in Human Health & Nutrition, Home & Personal Care, Paints & Coatings, Professional Hygiene and Wood Protection, Arxada’s products and capabilities provide a unique position with strong customer relationships and differentiated offerings.
Arxada’s approach to tax risk management and governance
Arxada is committed to high standards of corporate governance, transparency and responsibility. We pay tax in the countries in which we operate in accordance with local laws and international guidelines. These taxes include, corporate income taxes, employment taxes, social security, indirect taxes (such as VAT and sales and use taxes), taxes on ownership and use of property, customs and excise duties and environmental taxes. Responsibility and accountability for the Arxada Tax Strategy rests with the Chief Financial Officer and Head of Tax. The Board of Directors of Herens HoldCo AG has ultimate responsibility and approves this strategy. Local finance teams and the Global Tax Team are responsible for the day to day operation of the group’s tax affairs. These teams, comprising suitably qualified finance and tax professionals, identify, evaluate, and monitor tax risks in line with our commitment to comply with all relevant tax laws. Where there is significant uncertainty or complexity the company seeks advice from external tax advisors.
Arxada’s attitude to tax planning
In structuring and managing our commercial operations, we consider all appropriate tax laws, with a view to ensuring compliance and maximising value for our shareholders. All business transactions have commercial and economic substance. Where alternative structures achieve the desired commercial outcome with increased tax efficiency these may be selected. Any tax planning needs to generate value for our shareholders whilst considering the impact on Arxada’s reputation, relationships with tax authorities and other stakeholders. Arxada seeks advice from external tax advisors in areas of significant uncertainty or risk.
Level of risk Arxada is prepared to accept
We seek to continuously review and improve the effectiveness of our tax control framework in order to identify and manage tax risks. When taking positions on tax returns we follow a ‘more likely than not’ approach and expect such positions to stand up under audit. Arxada does not engage in or condone tax evasion or the facilitation of tax evasion.
Relationship with tax authorities
Arxada proactively looks to develop and maintain positive and transparent working relationships with all tax authorities, seeking to resolve issues in a constructive and timely manner. Where appropriate, we will seek to obtain pre-transaction clearances to reduce uncertainty. Arxada believes on the horizontal tax monitoring concept based on trust, mutual understanding, and transparency.
Application of this Strategy
This Strategy applies to all directors, employees and third parties whose actions impact the management of Arxada’s tax affairs. In particular this includes, but is not limited to:
· Arxada Directors and Executive Leadership Team
· All members of the Global Tax Team
· All regional and local Finance Directors and HR Directors and their reports that have responsibility for managing or supporting tax matters
· Any other employee that has responsibility for managing or supporting tax matters
· External advisors who support on tax matters
This strategy was approved by the board of Herens Holdco AG on January 25th, 2024.
This UK Tax Strategy complies with paragraph 16(2), Schedule 19 of the UK Finance Act 2016 and applies to the Arxada group companies in the UK for the period from 1 January 2024 to 31 December 2024.