DSV Panalpina has operational companies in more than 80 countries, all of which are governed by national and international tax legislation. This document outlines the DSV Group’s Global Tax Strategy and describes the governing principles for tax management that apply to the entire DSV Group. The overall aim is to be tax compliant and live up to our corporate social responsibility while ensuring a return on investment for our shareholders.
Roles and responsibility
The Danish Board of Directors have overall responsibility for this strategy and compliance with tax legislation.
Day-to-day responsibility lies with the Group CFO and the Group Tax department.
Group tax manages the DSV tax framework and issue guidelines to ensure that tax legislation is observed and complied with throughout the DSV Group.
In the UK, local management is responsible for ensuring compliance with UK tax legislation and for implementing DSV’s global tax governance principles outlined below.
DSV Panalpina’s Global Tax Strategy is reviewed on an annual basis by the Danish Board of Directors. Furthermore, operational tax matters, including how tax risks are monitored and managed is reported to the Audit Committee on a periodic basis.
The general tax strategy of the DSV Group is to comply with tax legislation and to meet legal requirements, including timely filing of tax returns and tax payments. At the same time, DSV has an obligation to ensure a return for our shareholders by managing tax, to secure a competitive effective tax rate in accordance with the tax legislation.
We do not engage in aggressive tax planning
DSV’s structure and set up is driven by commercial consideration and business strategy and not to obtain tax incentives.
We do not set up artificial structures in tax havens to avoid taxes on activities or engage in tax planning which moves revenue from high- to low- tax countries to minimize tax payments. We deconstruct any inherited offshore companies.
In connection with mergers and acquisitions, DSV sometimes inherits non-operational offshore companies and, whenever this is the case, it is a priority to eliminate the as soon as possible. During this very time-consuming process, these companies must be used for tax optimisation.
We maintain an open dialogue with tax authorities
DSV maintains has an open and transparent dialogue and a good working relationship with tax authorities, both proactively and reactively to minimise potential disputes and double taxation. In Denmark, DSV is part of a Tax governance concept with Danish Tax authorities. This cooperation builds on equal dialogue with a mutual comprehension of equality and openness. This aims to create tax transparency and secure a correct and up-front alignment of tax positions. DSV seeks to and has entered into similar agreements in other countries, when possible.
DSV makes use of external tax advisors to ensure compliance of transactions as well as tax returns.
We carefully monitor and assess risks
DSV’s approach to risk management in relation to tax affairs is the same as the overall approach for the DSV Group, carefully monitoring and analysing any risks to achieve the greatest possible level of transparency to ensure the right decisions are made in time to protect the business from any significant financial impact.
DSV in the UK
Local management are responsible for ensuring the Global DSV Tax strategy meets the requirements set out in schedule 19 of the UK Finance Act 2016. The Global DSV Tax Strategy applies to all companies in the DSV Group, including the following UK companies:
|DSV Air & Sea Ltd|
|DSV Air and Sea 2018 (UK) Ltd|
|DSV Commercials Ltd|
|DSV Road Holding Ltd|
|DSV Road Ltd|
|DSV Pension Trustees Ltd|
|DSV Peterborough Real Estate Ltd|
|DSV Solutions Ltd|
|Panalpina World Transport Ltd|
|UTi (UK) Holding Ltd|
|UTi Worldwide (UK) Ltd|
Reviewed by the DSV UK Group Management, 23rd February 2021
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