KONE as a company

Taxes are always a consequence of business operations. On the other hand, we must ensure that all business decisions also consider the financial and tax impact of the plan as well as the potential tax and reputational risks. We have a global transfer pricing model in place according to the OECD guidelines and it is implemented consistently within the Group. The Corporate Tax Team is continuously evaluating the transfer pricing model, to ensure its alignment with the business model on a continuous basis. On a minimum of an annual basis, KONE UK carries out a review ensuring that the necessary Tax policies, controls and processes have been adhered to and that staff are appropriately trained and qualified to undertake their functions.

KONE has a low appetite for tax risk. We follow “the more likely than not” principles for making decisions on tax matters by;

• Operating an effective tax control framework to identify key tax risks and to manage those tax risks through appropriate policies, controls and processes.
• Maintaining accounting systems and controls to meet tax compliance obligations.
• Maintaining a strong internal review system that supports the Senior Accounting Officer.
• Ensuring compliance with all relevant laws and regulations.

In the UK, KONE engage with HMRC through our Customer Compliance Manager to discuss our tax affairs. We are committed to maintaining an open, transparent and collaborative approach in our dealings with HMRC by:

• Reporting and responding accurately and in a timely manner and to act with integrity in all tax matters.
• We take care to ensure that our tax affairs are reported accurately, however, if we were to identify an error in a submitted tax return, we would seek to voluntarily disclose it, quantifying the effect of the error and paying any additional taxes that may become due.
• Notifying HMRC of major changes in our corporate operations.