PURPOSE OF THIS PAGE
This webpage sets out the UK tax strategy of Zebra Technologies Corporation (“Parent”), which is a US publicly traded corporation (NASDAQ: ZBRA) and is the common parent of UK domiciled companies (“UK Group”) transacting business and subject to tax in the UK.
The UK tax strategy applies to all Zebra UK companies and supports Zebra’s business strategy and commercial activity in the UK. The UK tax strategy involves managing tax affairs in a responsible and transparent manner to comply with relevant legislation.
Tax compliance for Zebra means paying an accurate and fair amount of tax in the right place at the right time and involves disclosing all relevant facts and circumstances to the tax authorities and claiming reliefs and incentives where available.
The ultimate responsibility for Zebra’s tax strategy and compliance rests with Parent’s and UK Group’s Board of Directors and Senior Officers who ensure that the appropriate framework is in place to oversee the identification and management of tax risk.
Parent’s Chief Financial Officer (“CFO”’) is the Senior Officer with executive responsibility for tax matters. Zebra’s aim is to comply with tax law and practice in all the territories in which it operates. Day-to-day management of tax affairs is delegated to Parent’s Vice President of Tax who has a team of appropriately qualified individuals.
The CFO is appraised regularly of all significant tax developments and participates in all material tax related decisions.
Tax Planning and Level of Risk
In structuring Zebra’s commercial activities, Parent will consider, among other factors, the tax laws of the countries within which it operates with a view to maximize shareholder value on a sustainable basis.
Any tax planning undertaken will be underpinned by commercial and economic substance and will have full regard to potential impact on Parent’s reputation, social responsibilities and broader goals. Transactions between group companies are conducted on an arm’s length basis in accordance with OECD guidelines and supported by appropriate documentation and studies.
Tax Risk Management
Given the scale of Zebra’s business and volume of tax obligations, risks will inevitably arise from time to time in relation to the interpretation of complex UK tax law and the nature of compliance arrangements. Zebra proactively seeks to identify, evaluate, manage and monitor these risks to ensure it remains in line with the overall Parent risk policies and parameters. Where there is significant uncertainty or complexity in relation to a tax risk, external specialist advice may be sought. The Parent maintains tax policies designating approvals which must be obtained prior to the execution of complex transactions which align to its Corporate policy for Delegation of Authority.
Relationship with HMRC and Other Tax Authorities
Zebra engages with tax authorities, including in the UK, Her Majesty’s Revenue and Customs (“HMRC”), with honesty, integrity, respect and fairness and in a spirit of collaboration and co-operative compliance, for example with respect to any changes due to the UK’s anticipated exit from the EU Internal Market.
Zebra is prepared to litigate where there may be a disagreement on interpretation of law but will first seek to resolve any disputed matters through proactive and transparent discussion.
UK group companies are within the scope of the ‘Senior Accounting Officer’ legislation under which steps are taken to establish and maintain appropriate tax accounting arrangements.
Board Ownership and Oversight
This UK tax strategy is aligned with Zebra’s global Code of Business Conduct and Core Values, which is approved, owned and overseen by the Zebra’s Board of Directors. The Zebra Group regards this publication as complying with duty under Schedule 19 of the Finance Act 2016. Its annual review is approved by Zebra Technologies Europe Ltd (“ZTEL”), a company incorporated and resident in the UK, having a role in overseeing the UK tax affairs of all Zebra subsidiaries and with the Parent Vice President of Tax serving as a ZTEL Board member.