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OTIS - UK Tax Statement

OTIS Worldwide Corporation UK Tax Statement

Introduction

At OTIS Worldwide Corporation, we are united by our core values. We call these The Otis Absolutes, and together they govern our work (and the way we work) worldwide. They define how we think, how we make decisions, and how we take action, every single day, everywhere. That’s why we’ve codified The Otis Absolutes in a clear and comprehensive document that celebrates our core values.

It is not a policy or rule book. Instead, it reflects the guiding principles that define Otis. These enduring tenets have allowed us to be the leader in the industry we created 168 years ago. We are proud to share this document publicly too, because we want all of our stakeholders to know what we value and what to expect from us. We also want to do business with partners who have similar values.

The principles set out in The Otis Absolutes demand we act with trust and integrity, putting honesty, accountability and ethics first in everything we do, wherever we operate around the world. It means that we comply with all laws, rules and regulations, lead by example and keep our commitments to our employees, customers, suppliers and each other.

OTIS’s overall approach to tax is shaped by The Otis Absolutes, applicable company policies and the laws of the countries where we operate. We do not tolerate the facilitation of tax evasion by anyone working for or on behalf of OTIS.

Compliance and Planning

OTIS’s approach to tax compliance and planning in the UK is an extension of this basic philosophy. Therefore, OTIS manages its UK tax obligations in compliance with applicable laws, rules and regulations in accordance with the company’s core values set out in The OTIS Absolutes. OTIS also protects the interests of its stakeholders by ensuring that available tax incentives and allowances are claimed wherever it makes commercial sense to do so.

As such, the UK senior management are clear that the OTIS UK entities do not follow any form of tax planning which would be considered aggressive or could result in the OTIS UK Group from being excluded from bidding for commercial projects. OTIS only structures transactions in a way that aligns with genuine commercial activity. We fully disclose the facts and any legal uncertainty associated with relevant transactions and we do not structure transactions in a way which we believe gives a tax result contrary to the intentions of Parliament.

The Otis tax team covering UK and local third-party advisors are clear in their understanding that such schemes would not be considered by senior management and the Board.

OTIS actively supports and complies with the UK’s Corporate Criminal Offences (CCO) legislation, including communicating the CCO requirements to all stakeholders (parent company, customers, suppliers and employees).

Risk Management

OTIS has strong and consistent controls operating across its business units to mitigate risk. The company relies on these controls to manage its UK tax risk and seeks to ensure that any material tax risks, or uncertainties are properly identified and promptly assessed in a manner consistent with our Absolutes. Like other risks, responsibility for managing tax risks rests with the departments and functions which have ownership of the related activity, process or business.

OTIS employs experienced and qualified tax specialists that have the appropriate authorities and level of tax knowledge and qualification to execute their role and apply skill, care and judgment to arrive at appropriate conclusions. Staff who are engaged in matters that have tax implications have relevant training and experience. OTIS periodically review how tax obligations are met by seeking external tax advice, investing in training for our staff and reviewing our processes and framework to address new and emerging risks.

OTIS seeks advice from external advisers where appropriate to ensure compliance with applicable laws, rules and regulations.

Relationship with HMRC

OTIS endeavours to build a positive relationship with HM Revenue & Customs (“HMRC”) by working in an open, constructive and timely manner. Given that tax laws can be complex and ambiguous, tax outcomes are inherently uncertain leading, inevitably, to areas of differing legal interpretation. Therefore, where appropriate, OTIS engages in proactive discussions with HMRC to obtain early resolution of material issues and eliminate uncertainty.

This statement is published on behalf of OTIS Worldwide Corporation and its affiliated UK entities and is approved by its Top-Level Management.

December 2021
 

The publication of this statement is regarded as satisfying the statutory obligations, for the current financial year ended 31st December 2021, under Paras 19(2) and 22(2), Schedule 19, Finance Act 2016 for the OTIS UK group.