Tax Strategy 2017

WerfenLife Group – Tax Strategy in the UK


WerfenLife Group

The WerfenLife Group is a multinational Group headquartered in Barcelona, Spain. The Group is engaged in the research and development (“R&D”), manufacturing and distribution of highly specialized products for healthcare and life sciences.

The Group operates in two different business areas: In Vitro Diagnostics (“IVD”) and medical devices. Within the IVD business area, the Group is engaged in the manufacturing and distribution of instruments and reagents used in the analysis of blood clots and the diagnosis of critically ill patients.

Under the Group’s operating model there are mainly two type of entities; those engaged in R&D and manufacturing activities and those engaged in distribution activities. The distribution network of the Group includes affiliates in more than 30 countries.

Werfen, Ltd., located in Birchwood, Warrington, is a Group distribution affiliate engaged in the distribution of IVD instruments and reagents acquired from the Group manufacturing entities.

This strategy applies to Werfen, Ltd. and to the other WerfenLife Group affiliates in the UK: TEM UK, Ltd. and Inova Diagnostics, Ltd. In this strategy, references to WerfenLife “British affiliates” or “affiliates in the UK” are to all these entities.

WerfenLife Group Code of Ethics and Tax Statregy

The Group’s tax strategy, as well as the tax strategy of the WerfenLife British affiliates, is closely linked to the Group’s values, as included in the Group’s Code of Ethics. The WerfenLife Group’s values include:

  • Honesty, humility and acting with integrity and good faith;
  • Transparency in the disclosure of all information, which must be suitable, truthful and complete; and
  • Compliance with applicable regulations in each country where the WerfenLife Group has a presence, as well as with the specific regulations of the sector’s key associations.

The excellent reputation of the WerfenLife Group is one of its most valuable and fragile assets. As a result, the Group and its affiliates in the UK are fully committed to compliance with both local and international regulations.

The WerfenLife Group meets internationally recognized standards by applying the arm's-length principle to all of its intercompany transactions, ensuring appropriate remuneration where the value is created.

The Group maintains documented tax policies and procedures in relation to key tax processes e.g. transfer pricing controls, which are reviewed annually and updated when deemed necessary.

Following the Group’s Code of Ethics, the WerfenLife British affiliates operate and manage their risks aiming to ensure compliance with all the applicable tax regulations.

Within the WerfenLife Group, the Chief Financial Officer (“CFO”) is the executive responsible for tax matters, although the day-to-day management of the Group’s tax affairs is delegated to the Group’s Head of Tax, who leads the corporate Tax and Legal department and reports to the CFO.

Tax planning

The WerfenLife Group is fully aligned with the objectives pursued by the OECD with the BEPS Action Plan. In this respect, we do not engage in artificial tax arrangements or contrived structures for the purpose of tax avoidance. We structure our operations based on business principles and in accordance with the relevant tax legislation. Aggressive tax planning is not considered by the WerfenLife Group.

Tax risk aversion

The WerfenLife Group appetite for tax risk is low so it is for its affiliates in the UK. As a multinational group with intercompany transactions, one of the tax risks to which we are exposed relates to transfer pricing. In this respect, the WerfenLife Group is very risk-averse. The Group coordinates centrally, from its headquarters, the transfer pricing policies applied by its affiliates worldwide. As a result, the Group has established and implemented different global transfer pricing policies for all the transactions involving two or more WerfenLife Group affiliates.

The transfer pricing policies of the WerfenLife Group have been defined and implemented in line with the principles established by the OECD Guidelines, the Base Erosion and Profit Shifting (‘BEPS’) project, and the different local regulations. For this purpose, we choose professional partners on tax carefully and only from reputed professional firms.

Relationship with HMRC

The Group British affiliates directly manage the relationship with HMRC and seek to maintain a transparent and constructive relationship. In this respect, the WerfenLife affiliates in the UK work to ensure that there is access to relevant information that may be requested by HMRC in order to demonstrate the integrity and transparency of their tax policies, processes, returns and payments.

The relationship between the Group British affiliates and the HMRC is limited to responding the queries or reviews required by this latter. Any inadvertent errors in submissions made to HMRC are fully disclosed as soon as reasonably practicable after they are identified.

Werfen United Kingdom

712 The Quadrant, Cavendish Avenue
Birchwood, Warrington
Cheshire WA3 6DE

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