JELD-WEN’s UK tax strategy is published by JELD-WEN Europe Limited, as head of the UK sub-group in compliance with Finance Act 2016 paragraph 19(2) of Schedule 19. This approach to tax is relevant for the financial year ending 31st December 20223
JELD-WEN’S APPROACH TO TAX
At JELD-WEN, we recognize the importance of responsible tax management as a fundamental aspect of our corporate governance. Our 2023 UK Tax Strategy outlines our commitment to ethical and effective tax practices in alignment with our broader business objectives.
The payment of taxes is a central link between JELD-WEN and the countries and communities where we operate. It is a vital part of our contribution to national economies and people’s lives.
JELD-WEN’s CORE VALUES
JELD-WEN’s five corporate values define our culture and serve as guideposts for our daily actions:
1. Building businesses ethically & safely
2. Investing in people
3. Inspiring customers through innovation
4. Delivering on our promises
5. Improving every day
Chief among our values are building businesses ethically and safely, delivering on our promises, and improving every day. When we invest in a country or location, we seek to build long-term relationships and develop our business sustainably. Consistent with these values, we recognise our responsibility towards investors, governments, suppliers, employees, and the local communities we are part of. The taxes we collect and pay represent one of the ways in which we embrace this responsibility.
In our view, the business has a wider responsibility to promote good and should not exist purely for commercial profit. We understand that the tax we pay is an important part of our wider economic and social impact and plays a key role in development, both inside and outside the UK. We regard it as a critical element of our commitment to grow in a sustainable, responsible and socially inclusive way.
We do this by seeking to comply with the applicable tax laws wherever we operate, being transparent about our approach to tax and taxes paid and being open to dialogue with governments, businesses, investors, and civil society.
TAX GOVERNANCE FRAMEWORK
JELD-WEN in the UK complies with the JELD-WEN global tax strategy, which is overseen by the Audit Committee. The Company, overseen by the Audit Committee, approves our tax strategy, regularly reviews its effectiveness, and maintains a sound system of risk management and internal control. The Company is responsible for all tax matters and provides assurance to the Audit Committee and our stakeholders/ investors of the Company’s adherence to our internal tax control framework. The Audit Committee of the Board of Directors is updated annually on our tax risks and our adherence to our tax strategy. The Company takes the needs and interests of stakeholders into account when considering the Company’s tax strategy and level of tax risk. The JELD-WEN responsible Tax Principles guide the Company’s decisions on tax matters:
COMPLIANCE AND PLANNING
An important part of JELD-WEN’s tax strategy is the maintenance and development of a strong, proactive working relationship with the tax authorities where we operate, including the UK’s tax authority HMRC. This is achieved in part by making sure our compliance obligations are met. JELD-WEN also seeks to engage with all tax authorities with honesty, integrity and transparency in respect of all tax matters.
We seek to comply with the letter and the spirit of the tax laws wherever we operate and expect to pay tax on profits where the business activity took place. JELD-WEN does not undertake aggressive tax planning, the sole purpose of which would be obtaining a tax advantage. We intend to make use of any tax incentives, exemptions and reliefs provided in law to minimise the tax costs to our business.
There can be instances when we interpret tax laws and their application differently from tax authorities and this can lead to disputes. In all cases, we seek to resolve any uncertainty directly with tax authorities, for example through real time collaboration with the tax authorities and a cooperative compliance approach. These offer an opportunity for early resolution, minimising the risk of future disputes. Where necessary, we will seek a clear resolution through the judicial system to test the legal principle of the tax law concerned.
Our tax and finance staff support the filing of many tax returns every year. When we fulfil our tax filing obligations, we aim to adhere to international best practice and aim for accuracy and timeliness. Our tax control framework, policies and guidelines set out the standards, controls, and assurance that establish boundaries for our tax activities.
Our tax control framework also sets out practical guidance for our staff. The JELD-WEN tax group regularly assess any tax risks, including those reported by operations. Material issues, disputes, or litigation are notified to the Audit Committee of the JELD-WEN Board of Directors as they arise. Our tax and data systems evolve continuously to deal with the growing demand for information from authorities. External auditors regularly review our tax controls as part of the audit of our financial results.
JELD-WEN is committed to acting with integrity and transparency. The tax professionals who deal with tax planning and compliance are expected to adopt this approach in all tax matters and to maintain the high ethical standards demanded by the professional bodies to which they belong. The relevant finance professionals involved in tax matters hold appropriate tax and accounting qualifications and undertake regular CPD to maintain and expand on their knowledge.
We do not condone, encourage or support tax evasion. Compliance is embedded in the JELD-WEN Code of Conduct. Employees, contract staff, and third parties with whom JELD-WEN has a business relationship may raise ethics and compliance concerns, anonymously if preferred, through the JELD-WEN Compliance Helpline.
We regularly monitor relevant changes and developments. For example, we review our corporate and financing structures to confirm that our presence in all countries, including low-tax jurisdictions, is grounded in substantive and commercial reasons. JELD-WEN may seek the support of an external adviser where specialist technical expertise is required that is not available in-house, or where additional resources are required.
SUSTAINABILITY AND ENVIRONMENTAL TAXES
Our commitment to sustainability extends to exploring opportunities for environmental tax incentives and reducing our environmental impact.
Our governance structure and practices for sustainability and environmental matters, including taxes, are designed to not only meet regulatory requirements but also demonstrate our commitment to responsible and ethical business practices.
Our 2023 UK Tax Strategy underscores our commitment to ethical business practices and responsible corporate citizenship. By adhering to these principles, we aim to contribute positively to the communities we serve while ensuring the long-term sustainability of our business.
Published: December 2023