Laborie is a world-leading medical technology company, aiming to advance performance in healthcare across the world. The headquarters of Laborie are in Portsmouth, New Hampshire, USA and the group is ultimately owned and controlled by Investor AB, a Swedish listed company holding stakes in a diverse range of businesses.
The UK market is the third largest within Laborie’s world-wide activities and the UK group entity is part of Medical Measurement Systems BV, the Netherlands.
This document sets out the strategic tax objectives of the UK Branch of Medical Measurement Systems BV (”Laborie UK”) and satisfies the Laborie UK’s requirement to publish its tax strategy under paragraph 16(2), Schedule 19 of the Finance Act 2016.
The Tax Strategy is approved by the Board of Directors of Laborie UK. The Laborie VP of Treasury and Tax is responsible for leading the Tax Strategy.
The Tax Strategy will be periodically reviewed, and any amendments will be approved by the Board of Directors.
This Tax Strategy relates to the period to 31 December 2023.
Laborie UK is exposed to a wide range of taxes, including corporation tax, VAT, insurance premium tax and national insurance contributions. In addition, Laborie UK has around 30 employees, generating a substantial further tax contribution to the UK economy through PAYE and NIC.
Laborie UK is committed to paying the correct amount of tax required under the laws and regulations of UK tax legislation and practice. Laborie UK takes a conservative approach to tax planning and does not pursue aggressive tax planning arrangements.
Laborie UK uses third party advisors to provide advice and guidance to help assess the tax risks and ensure its compliance with applicable laws, rules, regulations, and disclosure requirements.
It is the policy of Laborie UK to ensure that all tax positions taken are consistent with the core values of the Laborie group, which notably include respect for the environment and respect for people and communities. The policy ensures that Laborie UK pays the appropriate amount of tax in relation to its commercial activities.
The main tax risks for Laborie UK are identified as:
These risks are associated with the failure to comply with the tax regulations of the appropriate authorities within each market Laborie UK operates. The risk is reduced by using external professional advisers to prepare, advise and review tax computations and submissions, together with an in-house team of qualified accountants and experienced tax experts.
Laborie UK primarily has commercial activities in the United Kingdom but does source goods internationally from third-party organizations and the Laborie Group respectively. With the complex tax issues that cover international business, advice is always taken from professional advisers when new channels are established, or current transactions amended, in order to ensure adherence to the correct rates and treatment of tax.
Laborie UK ensures it is open and transparent with every governing entity in every market, although it will be primarily with the HMRC in the UK. Laborie UK has a conservative approach to tax planning and aims to have open communications with all tax authorities.
Laborie UK will comply with documented policies and procedures in relation to tax risk management and will conduct risk assessments before entering any new initiatives. Where appropriate, this will include obtaining external professional opinions to verify and support Laborie UK tax management team’s conclusions.
Laborie UK strives to maintain a low-risk rating with HMRC.
Whilst seeking to be efficient in the tax affairs and reduce the tax liability through taking advantage of reliefs and incentives where applicable, Laborie UK ensures that any tax planning is based on sound commercial principles but will always respect the intention and spirit of the law, as well as the letter of the law.
Laborie UK seeks to build and sustain honest, transparent relationships with HMRC and other tax authorities that are constructive and based on mutual respect, avoiding unnecessary delays and disputes wherever possible.
The Laborie Group VP of Treasury and Tax implements the world-wide group tax strategy, which includes the Laborie UK tax strategy. The Laborie VP of Treasury and Tax is assisted by the Finance Director overseeing the UK region, plus other members of the Group Finance and Group Tax teams. The Tax Strategy is approved by the Board of Directors.
For matters where the VP of Treasury and Tax and Finance team consider they have insufficient skill or experience, external expert consultants who have suitable knowledge of the Laborie Group, the industry and tax law are engaged to provide advice and guidance.