JELD-WEN’s approach to tax supports our UK tax strategy and is published in compliance with Finance Act 2016 s161 Schedule 19. This approach to tax is relevant for the financial year ending 31st December 2020.
JELD-WEN’S APPROACH TO TAX
The payment of taxes is a central link between JELD-WEN and the countries and communities where we operate. It is a vital part of our contribution to national economies and people’s lives.
JELD-WEN’s CORE VALUES
JELD-WEN’s five corporate values define our culture and serve as guideposts for our daily actions:
1. Building businesses ethically & safely
2. Investing in people
3. Inspiring customers through innovation
4. Delivering on our promises
5. Improving every day
Chief among our values are building businesses ethically and safely, delivering on our promises, and improving every day. When we invest in a country or location, we seek to build long-term relationships and develop our business sustainably. Consistent with these values, we recognise our responsibility towards investors, governments, suppliers, employees, and the local communities we are part of. The taxes we collect and pay represent one of the ways in which we embrace this responsibility.
Our tax strategy is designed to support JELD-WEN in delivering its strategic ambitions.
We do this by seeking to comply with the applicable tax laws wherever we operate, being transparent about our approach to tax and taxes paid and open to dialogue with governments, businesses, investors, and civil society.
TAX GOVERNANCE FRAMEWORK
The Chief Financial Officer, together with the Audit Committee, approves our tax strategy, regularly reviews its effectiveness, and maintains a sound system of risk management and internal control. The Vice President of Global Tax is responsible for tax matters and provides assurance based on our internal tax control framework. The Board of Directors and Audit Committee is updated annually on our tax risks and our adherence to our tax strategy. They will take the needs and interests of stakeholders into account when considering the level of risk while ensuring JELD-WEN acts with integrity and transparency. The JELD-WEN responsible Tax Principles guide decisions on tax matters:
COMPLIANCE AND PLANNING
An important part of JELD-WEN’s tax strategy is the maintenance and development of a strong, proactive working relationship with the tax authorities where we operate. This is achieved in part by making sure our compliance obligations are met. JELD-WEN also seeks to engage with all tax authorities with honesty, integrity and transparency in respect of all tax matters.
We seek to comply with the letter and the spirit of the tax laws wherever we operate and expect to pay tax on profits where the business activity took place. Where offered and appropriate, we apply tax incentives and exemptions.
There can be instances when we interpret tax laws and their application differently from tax authorities and this can lead to disputes. In all cases, we seek to resolve any uncertainty directly with tax authorities, for example through real time collaboration with the tax authorities and a cooperative compliance approach. These offer an opportunity for early resolution, minimising the risk of future disputes. Where necessary, we will seek a clear resolution through the judicial system to test the legal principle of the tax law concerned.
Our tax and finance staff support the filing of many tax returns every year. When we fulfil our tax filing obligations, we aim to adhere to international best practice and aim for accuracy and timeliness. Our tax control framework, policies and guidelines set out the standards, controls, and assurance that establish boundaries for our tax activities.
Our tax control framework also sets out practical guidance for our staff. The JELD-WEN tax group regularly assess any tax risks, including those reported by operations. Material issues, disputes, or litigation are notified to the Audit Committee of the JELD-WEN Board of Directors as they arise. Our tax and data systems evolve continuously to deal with the growing demand for information from authorities. External auditors regularly review our tax controls as part of the audit of our financial results.
JELD-WEN is committed to acting with integrity and transparency. The tax professionals who deal with tax planning and compliance are expected to adopt this approach in all tax matters and to maintain the high ethical standards demanded by the professional bodies to which they belong. The relevant finance professionals involved in tax matters hold appropriate tax and accounting qualifications and undertake regular CPD to maintain and expand on their knowledge.
We do not condone, encourage or support tax evasion. Compliance is embedded in the JELD-WEN Code of Conduct. Employees, contract staff, and third parties with whom JELD-WEN has a business relationship may raise ethics and compliance concerns, anonymously if preferred, through the JELD-WEN Compliance Helpline.
We regularly monitor relevant changes and developments. For example, we review our corporate and financing structures to confirm that our presence in all countries, including low-tax jurisdictions, is grounded in substantive and commercial reasons. JELD-WEN may seek the support of an external adviser where specialist technical expertise is required that is not available in-house, or where additional resources are required.