SECTION 1: INTRODUCTION
1.1 Background
Advanced Instruments is a global provider of scientific and analytical solutions for the biopharma and clinical industries. The headquarters are in Norwood, MA USA. The group is ultimately owned and controlled by Investor AB, a Swedish listed company holding stakes in a diverse range of businesses.
The UK Market is an important market within Advanced Instrument’s world-wide activities, and all UK operations are conducted in Advanced Instruments Ltd. which is a subsidiary of Advanced Instruments Holdings Ltd.
This document sets out the strategic tax objectives of all UK entities within the Advanced Instruments Group (“the UK Group”) and satisfies the UK’s requirement to publish its tax strategy under Schedule 19 of the Finance Act 2016.
1.2 Ownership and approval
The Tax Strategy is approved by the Board of Directors of the UK Group.
Advanced Instruments management is responsible for leading the Tax Strategy, assisted by licensed third party tax advisers.
The Tax Strategy will be periodically reviewed, and any amendments will be approved by the Board of Directors.
This tax strategy document is effective for the financial year ending 31 December 2024. The tax strategy statement is reviewed annually and updated as necessary.
1.3 Scope
The UK Group is exposed to a wide range of taxes, including corporation tax, VAT, insurance premium tax and national insurance contributions. In addition, the UK Group has around 75 employees, generating a substantial further tax contribution to the economy through PAYE and NIC.
SECTION 2: TAX STRATEGY
2.1 Summary
The UK Group is committed to paying the correct amount of tax required under the laws and regulations of UK tax legislation and practice. The UK Group takes a conservative approach to tax planning and does not pursue aggressive tax planning arrangements.
The UK Group uses third party advisers to provide advice and guidance to help assess the tax risks and ensure its compliance with applicable laws, rules, regulations and disclosure requirements.
2.2 Risk Management
It is the policy of the UK Group to ensure that all tax positions taken are consistent with the core values of the company, which notably include ownership and accountability as well as respect for the environment and respect for people and communities. The policy ensures that the UK Group pays the appropriate amount of tax in relation to its commercial activities.
The main tax risks for the UK Group are identified as:
2.2.1 Tax compliance and reporting risks. These risks are associated with the failure to comply with the tax regulations of the appropriate authorities within each market that Advanced Instruments operates. The risk is reduced by using external professional advisers to prepare, advise and review tax computations and submissions.
2.2.2 Transactional risks. As the UK Group operates across several markets with associated complex tax issues, advice is always taken from professional advisers when new distribution channels are established, or current transactions amended, in order to ensure adherence to the correct rates and treatment of tax.
2.2.3 Reputational risks. The UK Group ensures they are open and transparent with every governing entity in every market, although it will be primarily with the HMRC in the UK. The UK Group has a conservative approach to tax planning and aims to have open communications with all tax authorities.
2.3 Documented Policies and Procedures.
The UK Group will comply with documented policies and procedures in relation to tax risk management and will conduct risk assessments before entering any new initiatives. Where appropriate, this will include obtaining external professional opinions to verify and support the UK Group management team’s conclusions.
2.4 Tax Planning
The UK Group strives to maintain a low-risk rating with HMRC.
Whilst seeking to be efficient in the tax affairs and reduce the tax liability through taking of reliefs and incentives where applicable, the UK Group ensures that any tax planning is based on sound commercial principles but will show respect at all times for the intention and spirit of the law, as well as the letter of the law.
2.5 Relationship with HMRC and other tax authorities
The UK Group seeks to build and sustain honest, transparent relationships with HMRC and other tax authorities that are constructive and based on mutual respect, avoiding unnecessary delays and disputes wherever possible.
SECTION 3: GOVERNANCE
3.1 Internal ownership and structure
The UK Group management team implements the world-wide group tax strategy with respect to Advanced Instruments LLC, which includes the UK Group and its UK tax strategy.
Additionally, the UK Group management team reports to and consults with the Investor AB group on all material tax strategies and risks within the group. The tax strategy is approved by the Board of Directors.
3.2 External Consultants
For matters where the Advanced Instruments management team consider they have insufficient skill or experience, external expert consultants who have suitable knowledge of the UK Group and the greater Advanced Instruments group, the industry, and tax law, are engaged to provide advice and guidance.
