UK TAX STRATEGY
Netgear UK Limited (the ‘Company’) regards this publication of its UK tax strategy as complying with its duty under paragraph 22(2) of Schedule 19 of the Finance Act 2016 for the financial year end 31 December 2019. This document sets out the Company’s approach to UK taxation.
NETGEAR, Inc. and subsidiaries (global group referred to as ‘NETGEAR’) is a global company that is publically traded on the US NASDAQ stock exchange. NETGEAR delivers innovative networking and Internet connected products to consumers and businesses. We operate and report in two segments: Connected Home, and Small and Medium Business (“SMB”).
The Connected Home segment is focused on consumers and consists of high-performance, dependable and easy-to-use 4G/5G mobile, Wi-Fi internet networking solutions and smart devices.
The SMB segment is focused on small and medium-sized businesses and consists of business networking, storage, wireless LAN and security solutions that bring enterprise-class functionality to small and medium-sized businesses at an affordable price. We are organized into the following three geographic territories: Americas; Europe, Middle-East and Africa and Asia Pacific.
We turn ideas into innovative networking products that connect people, businesses, and advance the way we live. Easy to use. Powerful. Smart. We develop innovative and easy to use products for home, for business and for service providers.
From the UK perspective, the Company represents our UK presence. The scope of our UK business operations and activities has not been significant. The Company advertises, promotes and supports NETGEAR’s consumer electronics, computer and networking products and peripherals.
Approach to risk management and governance
Our global tax strategy is aligned with the business operations to ensure that jurisdictional profits are consistent with the respective functions and risks within each country. It is our objective to ensure that we remit the appropriate amount of tax in each respective location. Management of the tax function is the responsibility of the Vice-President of Tax, who is responsible for oversight of all tax compliance, ensuring that tax is timely paid and all respective regulations are followed.
Oversight of the tax function within NETGEAR is provided by the Management Team as well as the Audit Committee of the Board of Directors. For composition of the Management Team (click here) and Board of Directors and the Audit Committee (click here)
The Audit Committee has responsibilities for oversight and is informed on a regular basis of relevant risks (including tax, where appropriate). Corporate governance is of significant business importance with the focus on robust control framework ensuring that controls are implemented, reviewed and adhered to on regular basis.
Those responsible for the day-to-day activities of the Company are supported by the finance team, the Vice-President of Tax and competent professional external advisors.
Our attitude towards tax planning and level of risk
The commercial operation dictates the approach to tax strategy. NETGEAR’s approach to transactions is to execute its commercial business in an efficient and effective manner.
Tax is not the principal driver in making any business decision. It is a consideration along with various other factors, including items such as availability of suitable human resources, market conditions, market opportunities, cost structure, etc. The business will seek to utilise statutorily available reliefs such as research and development, capital allowances etc.
We have a low tolerance to tax risk and ensure all relevant risks (including tax risks) are reported to the relevant stakeholders across the business. The Company is committed to ensuring compliance with all relevant tax legislative requirements. We ensure that to the extent there are no clear guidelines on the treatment of certain transactions or where it is necessary to take a filing position due to uncertainty in application of the law, we seek appropriate professional advice.
Approach towards our dealings with Her Majesty’s Revenue & Customs (HMRC)
The Company strives to be transparent and cooperative in its dealings with HMRC. The business is responsive to all queries from HMRC (including any routine tax audit).
We focus on having proactive and collaborative relationship with HMRC that are based on trust and robust tax administration, including timely tax filings and payments.