Ecovyst Inc. - UK Tax Strategy - for the year ended 31 December 2020
As required by paragraph 19 Schedule 19 (2) of the UK Finance Act 2016, PQ Corporation, a US multi-national enterprise (“MNE”) with subsidiaries having operations in the UK sets forth its tax strategy as it relates to UK taxation. Ecovyst Inc. considers that this Tax Strategy is compliant with its duty under section 161 and the above schedule in respect of the Ecovyst Silicas UK Limited, Ecovyst Holdings I Limited and Potters-Ballotini UK subgroups.
Ecovyst Inc. (“Ecovyst”) is committed to:
- Placing a high value on our corporate responsibility to timely file all appropriate tax returns and remit all applicable tax due to each tax jurisdiction in which we operate.
- Conducting our business in the most tax efficient manner while always remaining compliant with all applicable tax laws and regulations in regard to our global activities.
- Administering proper oversight while having sufficient internal controls in place to ensure an appropriate level of corporate governance in regards to the policies and procedures of our tax-related activities.
- Working together with tax authorities to resolve any disputes in a professional manner that is fair and equitable to both parties.
Tax and Governance
Responsibility for the tax strategy and governance ultimately sits with the PQ Corporation Chief Financial Officer (CFO) with day-to-day responsibility sitting with the VP Tax, who reports to the CFO. The Directors of the companies are responsible for local tax compliance within the UK.
The tax group is involved in all major business decisions to ensure a full understanding of the tax consequences related to the decisions being considered. Any tax planning is focused on supporting the operational needs of our business by ensuring that our business is carried out and decisions are made in the most tax efficient manner while, at the same time, always remaining compliant with all relevant tax laws.
Our tax group consists of in-house professionals holding a combination of accounting and tax qualifications. We also have relationships with professional advisors around the world and often seek their expert advice, as needed, in order to minimize the tax risk involved with our tax planning.
The Company places a high value on maintaining its positive reputation as a responsible Corporate Citizen in every country in which we operate. Our Leadership Team appreciates the importance of tax compliance and is aware of the negative publicity that comes from not being compliant.
Risk Management
Tax risks are assessed by Ecovyst Inc. VP Tax, tax group, Finance Directors & local financial management and managed to ensure compliance with all relevant tax laws, rules and regulations. If a position is uncertain, third party advice is obtained in order to gain an additional level of support and reduce the level of tax risk associated with the position to a very low threshold. If we are unable to reduce the risk to this very low threshold, we are unable to provide a valid business purpose for taking such position, or we are unable to support such position from a technical standpoint, we would not proceed with taking the position on a Tax Return.
Relationship with HMRC (Her Majesty’s Revenue and Customs)
We value an open and honest working relationship with the tax authorities in the countries in which we operate. Should a dispute arise with regard to the interpretation and application of tax law, we are committed to addressing the matter promptly and resolving it in an open, constructive, and professional manner.