Prestolite Electric Limited (PEL) is a manufacturer and supplier of alternators, starters, other electrical equipment and services to the transportation, industrial and military industry. Our immediate parent company Prestolite Incorporated (‘Prestolite Inc.’) is based in the US. Our ultimate parent company Broad-Ocean Motor Co. Limited is based in China and provides global customers with safe, environmentally friendly and efficient motor drive system solutions.
PEL is a small component of the much larger multinational Broad-Ocean group. Our UK tax strategy is one of straight forward compliance. We are risk averse on tax matters and pride ourselves in meeting our obligations.
Tax governance and risk management
The managing director directly oversees the tax affairs of the company. This includes the review and approval of all tax returns and payments and raising tax issues with the wider Board as required.
As there a number of common directorships between Prestolite Electric Limited, our immediate parent Prestolite Inc. and Broad-Ocean Motor Co. Limited tax activity is coordinated and intercompany transactions are carried out on an arm’s length basis.
Compliance activities are performed by the financial controller and outsource providers. Tax risk is therefore managed by the use of reputable third party providers and ensuring staff are appropriately trained and qualified.
We also consult with advisors to ensure we are up to date with changes to tax legislation and are able to identify and manage any associated risks.
As a small business the Board of directors has close involvement in all commercial decision making and ensure tax aspects are appropriately considered.
We seek to predict and understand the tax implications of our business decisions but we do not pursue aggressive tax planning or avoidance activity.
We have a strong track record of compliance and as such have limited interaction with HMRC.
Communication with HMRC is typically limited to administrative queries.
If required, we will respond to any information requests by HMRC in a transparent and timely manner.
This UK tax strategy statement has been approved by Prestolite Electric Limited’s Board of Directors and its publication is regarded as complying with Part 2 of Schedule 19 of the 2016 Finance Act in respect of the year ended 31 December 2017.