UK Group Tax Strategy

Duferco International Trading Holding S.A. (“DITH”) is a global leader in the trading and distribution of steel and the raw materials essential to steel production.  We are active across the entire steel value chain and we operate trading and distribution companies and few production units (“DITH Group”) in many jurisdictions around the world.

DITH is active in the United Kingdom through its subsidiaries Duferco UK Limited and Meridian Steel Limited (“UK Group”).

The Tax Strategy published here below refer to the fiscal year 2024.

Compliance with UK Tax Law and Governance

The UK Group is committed to fully comply with all applicable tax laws and regulations in the United Kingdom, including but not limited to the requirements set forth by HMRC. The companies will ensure that all tax returns, reports, and other tax-related filings are accurately prepared and filed on a timely basis.

The UK Group is also committed to maintaining robust tax governance procedures to effectively manage tax compliance. The companies have established clear lines of responsibility and accountability for tax matters, ensuring that tax-related decisions are made by qualified and knowledgeable employees. In addition, it will also maintain comprehensive documentation of its tax governance policies, procedures, and controls to ensure transparency and accountability.

Corporate Tax

The UK Group, as well as the rest of DITH Group, will also engage in transparent and ethical tax planning, aimed at minimizing tax risks in line with the law, and will not participate in any aggressive tax planning schemes or arrangements.

The UK Group, as well as the rest of DITH Group, will adopt arm's length principles in its transfer pricing arrangements, ensuring that all transactions between related parties are conducted on commercial terms and conditions in accordance with the OECD Transfer Pricing Guidelines and UK tax legislation. The company will maintain contemporaneous transfer pricing documentation to support its pricing decisions.

The UK Group will seek professional tax advice from qualified and reputable tax advisors to ensure that its tax affairs are managed in compliance with UK tax law and HMRC requirements. The company will also ensure that any tax advisors engaged are knowledgeable about the companies’ business activities and fully understand its zero tax risk approach.

VAT

The UK Group will comply with all VAT laws and regulations in the United Kingdom. The companies will accurately calculate, collect, and remit VAT on all applicable transactions, and will maintain complete and accurate records of its VAT transactions in accordance with HMRC requirements. They will also proactively engage with HMRC on VAT matters, respond to any inquiries or requests for information in a timely manner, and seek to resolve any VAT disputes or disagreements professionally.

Employment Tax

The UK Group will comply with all employment tax laws and regulations in the United Kingdom. The company will accurately calculate, withhold, and remit all applicable employment taxes, such as income tax and National Insurance contributions, for its employees in accordance with the law and HMRC guidelines. The UK Group will also maintain complete and accurate records of its employment tax transactions and will ensure that its employees are appropriately trained and qualified to handle employment tax matters.

More in general, the UK Group will maintain an open and cooperative relationship with HMRC, based on transparency, honesty, and mutual respect. The companies will proactively engage with HMRC on tax matters, promptly respond to any inquiries or requests for information, and seek to resolve any tax disputes or disagreements in a timely and professional manner.

In addition, the UK Group is committed to continuously review and improve its tax strategy and tax compliance management procedures to adapt to changes in tax laws and regulations, business activities, and HMRC requirements. The companies will also ensure that its tax strategy is communicated effectively to all relevant employees and will provide regular training and updates on tax matters.

The UK Group engaged PwC UK to assess its current tax processes and framework and their opinion is that these are aligned with HMRC requirements.

This tax strategy is approved by the Board of Directors of Duferco UK Limited and of Meridian Steel Limited, and it will be reviewed periodically to ensure its effectiveness and compliance with UK tax laws and HMRC requirements.

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