Governance and Risk Management
Kronos’ corporate governance function understands the importance of effectively administering the Company’s tax affairs. The Audit Committee, Chief Financial Officer and Vice President of Global Tax & Treasury maintain ongoing and regular dialogue regarding the Company’s tax affairs. Kronos’ Tax Department manages the Company’s day-to-day tax affairs. Advice is sought from outside tax advisors for specialized non-routine/non-recurring UK tax matters and Kronos reviews such matters contemporaneously with its UK financial statement auditors.
Kronos exercises reasonable care in relation to all Company processes that may affect tax obligations. Kronos’ tax processes are managed by highly qualified process owners within the Tax Department who ensure that key tax risks are identified and mitigated. Process owners remain current on legislative changes that may result in a need to modify processes.
Kronos closely monitors developments affecting its transfer pricing obligations in the UK and elsewhere to ensure that its transfer pricing policies and procedures remain consistent with the OECD guidelines, the arm’s length standard and local compliance requirements.
Attitude Toward Tax Planning and Risk Tolerance
In managing its tax affairs, Kronos is committed to:
- Meeting its legal and regulatory obligations and filing all appropriate tax returns and making all tax payments.
- Aligning its tax strategy with the Company’s overarching business strategy and approach to corporate governance and risk management.
- Making use of available tax incentives in a manner that is consistent with the government’s policy objectives.
It is in Kronos’ best interest to have certainty in its tax affairs. As a result, Kronos aims to structure its tax affairs based on sound commercial principles.
Relationship with Her Majesty's Revenue & Customs
Kronos is open and transparent when interacting with HMRC. Kronos’ tax filings and payments are timely and accurate. As a result, Kronos’ communications with HMRC have been limited and routine in nature.
This statement is made pursuant to the tax strategy disclosure requirements of the United Kingdom’s Finance Act 2016