TVH's tax strategy

1.    General

TVH, founded in 1969, is a leading global independent distributor of aftermarket parts for material handling, construction, industrial and agricultural equipment. It has continuously expanded its customer offering and geographical presence and has built up a considerable amount of parts data over the years which, together with its exceptional logistics capabilities, unmatched product availability, and efficient e-commerce platforms form the basis of its competitive positioning and serve its purpose of keeping customers going and growing.

TVH’s tax strategy and approach (“Tax Strategy”), outlined below, is part of TVH’s overall purpose, vision and values and is designed to support TVH in delivering its overall strategy.

The Tax Strategy also builds on the critical principles in TVH’s Code of Conduct, i.e. integrity, responsible conduct, teamwork, excellence and commitment.

All TVH employees, officers and directors are required to understand and follow the principles set forth in our Code of Conduct and hence also the principles laid down in the tax strategy.

Being a worldwide player, TVH is committed to thinking globally and acting locally. In selecting its business partners, TVH prefers to work with partners who demonstrate strong values and commit to the same (tax) principles expressed in our Code of Conduct.

2.    Accountability & Governance  

The ultimate accountability for all tax matters lies with our Board of Directors, who sub-delegates to our Chief Financial Officer (“CFO”).

The day-to-day responsibility for taxes lies with the (local) Finance teams, and where present (local) tax teams, supported by the central tax team headed by the Global Tax & Transfer Pricing Director.

TVH management treats tax governance and compliance as important matters via our tax control framework. We aim to ensure clear and consistent tax processes and the formalisation of tax roles and responsibilities for all key tax activities.

TVH’s (central) tax team is committed to extending its tax knowledge outside of the tax department by informing other departments on a regular basis on various tax topics and tax law changes where relevant.

TVH’s Tax Strategy is approved by the Audit Committee, which supports TVH’s Board of Directors on matters of financial and operational controls and ensures compliance with relevant standards. On a regular basis, the CFO and/or the Global Tax & Transfer Pricing Director reports to the Audit Committee on relevant tax topics and related risk management.

3.    Compliance

TVH has a presence in close to 30 countries across all continents. Our presence in each country is driven by economic and commercial activity regardless of the applicable tax rate in these countries.

In accordance with TVH’s Code of Conduct, TVH shall comply with the (tax) laws and regulations of each country in which it operates, with the tax-related Guidelines of the Organization for Economic Co-operation and Development (“OECD”) and with any applicable tax treaties.

Paying the required amount of taxes on profits generated through operational activities is a critical principle to TVH.

TVH aims to prepare and file all tax returns required in a timely manner, while providing complete and accurate disclosures to the relevant tax authorities. The positions taken in the tax returns and other tax-related obligations must be supported by relevant tax laws, recognizing that these laws can at times be subject to different interpretations and that a certain degree of risk and uncertainty is inevitable in the increasingly complex international landscape companies currently operate in. Where appropriate, TVH will seek external expertise and/or may seek (upfront) certainty on these positions.

4.    Relationships with authorities

TVH aims to build and maintain a constructive and transparent relationship with the tax authorities in the jurisdictions we operate in. In case of tax audits, TVH will cooperate and provide the requested relevant information to the tax authorities in a timely manner. Where appropriate, the assistance of (an) external tax counsel(s) will be sought.

In line with our Code of Conduct, TVH will not bribe, or otherwise induce tax officials, government officials or ministers. TVH will act with integrity at all times.

5.    Seeking and accepting tax incentives

Where TVH claims tax incentives offered by governments and/or fiscal authorities, we seek to ensure that they are transparent and consistent with statutory or regulatory frameworks and in line with our group strategy. We will only accept tax incentives that are in line with our business and operational activities and that require economic substance. Where appropriate, we aim to seek advice from external counsels with specific expertise on tax incentives in order to obtain upfront certainty on the correct interpretation of the applicable law and/or may even seek upfront clearance (e.g. via a ruling) with the competent authorities.

6.    End note 

TVH regards the publication of this Tax Strategy as complying with the Group’s duty under the United Kingdom’s legislation, i.e. paragraph 16(2) of Schedule 19 of the Finance Act 2016.