Eaton Group's UK tax policy disclosure for financial year ending 31 December 2019

Introduction

This document summarizes Eaton Corporation plc and worldwide subsidiaries’ (together “Eaton Group”) policy and approach to conducting United Kingdom (“UK”) tax affairs and managing tax risk.  This document has been approved by Eaton Corporation plc Board of Directors.  This document will be reviewed annually and significant amendments will be approved by the Eaton Corporation plc Board of Directors.  

Compliance with UK tax laws, rules and regulations

Eaton Group respects and obeys the laws, rules and regulations for all jurisdictions where Eaton Group operates.  This is in alignment with the Eaton Code of Ethics.  As such, Eaton Group is committed to observing and complying with all applicable UK tax laws, rules and regulations.  Eaton Group is committed to timely paying taxes legally due in the UK. 

Approach of Eaton Group to governance and risk management of UK tax matters

Eaton Group establishes internal financial policies requiring UK businesses to comply with all applicable UK tax laws and deploys an internal review process to ensure this policy is followed timely and accurately.  Additionally, Eaton Group’s implementation and interpretation of UK tax matters are reviewed by external financial auditors and other tax advisors.                  

Attitude of Eaton Group toward UK tax planning 

Eaton Group does not engage in artificial tax arrangements.  Eaton Group UK tax planning supports UK commercial strategies and economic activities.  Transactions between Eaton Group companies are conducted on an arm’s-length basis and in accordance with UK tax laws.     

Level of risk Eaton Group has in relation to UK taxation

Eaton Group’s UK tax planning strategies are deployed only when it is more likely than not the tax positions will be sustained upon audit.  Eaton Group assesses UK tax risk on an ongoing basis. Where transactions are complex or the tax law is uncertain, external advice is usually sought.  Eaton Group’s external financial auditors also play an active role in reviewing the tax implications of transactions as they are implemented. 

Approach with Her Majesty’s Revenue and Customs agency (“HMRC”)

Eaton Group is committed to: 

• promoting a professional, collaborative, open and transparent relationship with HMRC;
• discussing business activities and transactions with significant tax implications with HMRC in a timely fashion;
• engaging in timely dialogue with HMRC to respond to queries and information requests to ensure that HMRC is aware of how issues are progressing;  
• working proactively with HMRC to resolve all tax disputes; and
• making appropriate disclosures in tax returns, reports and correspondence submitted to HMRC.  

Further information

Eaton Group’s publication of its UK tax strategy is applicable to all Eaton UK companies.  Eaton Group regards this document as complying with its responsibility under the Financial Act 2016, Schedule 19, paragraph 19(2).

For financial year ending 31 December 2019