OTIS Worldwide Corporation UK Tax Statement

Introduction

At OTIS Worldwide Corporation, we are united by our core values. We call these The Otis Absolutes, and together they govern our work (and the way we work) worldwide. They define how we think, how we make decisions, and how we take action, every single day, everywhere. That’s why we’ve codified The Otis Absolutes in a clear and comprehensive document that celebrates our core values.

It is not a policy or rule book. Instead, it reflects the guiding principles that define Otis. These enduring tenets have allowed us to be the leader in the industry we created 171 years ago. We are proud to share this document publicly too, because we want all of our stakeholders to know what we value and what to expect from us. We also want to do business with partners who have similar values.

The principles set out in The Otis Absolutes demand we act with trust and integrity, putting honesty, accountability and ethics first in everything we do, wherever we operate around the world. It means that we comply with all laws, rules and regulations, lead by example and keep our commitments to our employees, customers, suppliers and each other.

OTIS’s overall approach to tax is shaped by The Otis Absolutes, applicable company policies and the laws of the countries where we operate. We do not tolerate the facilitation of tax evasion by anyone working for or on behalf of OTIS.

OTIS is committed to tax transparency and ethical behavior.

Compliance and Planning

OTIS acts with due diligence and care in managing all tax-related activities and maintains appropriate tax governance procedures.

OTIS’s approach to tax compliance and planning in the UK is an extension of this basic philosophy. Therefore, OTIS manages its UK tax obligations in compliance with applicable laws, rules and regulations in accordance with the company’s core values set out in The OTIS Absolutes. OTIS also protects the interests of its stakeholders by ensuring that available tax incentives and allowances are claimed wherever it makes commercial sense to do so.

As such, the UK senior management are clear that the OTIS UK entities do not follow any form of tax planning which would be considered aggressive or could result in the OTIS UK Group from being excluded from bidding for commercial projects. Otis structures transactions in alignment with genuine commercial activity and does not seek to achieve a tax result contrary to the intentions of Parliament. Otis is also transparent in fully disclosing the facts and any legal uncertainty associated with relevant transactions.

The Otis tax team covering UK and local third-party advisors are clear in their understanding that such schemes would not be considered by senior management and the Board.

OTIS actively supports and complies with the UK’s Corporate Criminal Offences (CCO) legislation, including communicating the CCO requirements to all stakeholders (parent company, customers, suppliers and employees) and publishes its own CCO policy publicly to prevent the facilitation of tax evasion.

Risk Management

OTIS has strong and consistent controls operating across its business units to mitigate risk. The company relies on these controls to manage its UK tax risk and seeks to ensure that any material tax risks, or uncertainties are properly identified and promptly assessed in a manner consistent with our Absolutes. Like other risks, responsibility for managing tax risks rests with the departments and functions which have ownership of the related activity, process or business.

The Tax Group interacts regularly with the Board of Directors of OTIS UK and other stakeholders, and through collaboration strives to ensure that informed tax decisions are made and appropriately managed and documented.

OTIS employs experienced and qualified tax specialists that have the appropriate authorities and level of tax knowledge and qualification to execute their role and apply skill, care and judgment to arrive at appropriate conclusions. Staff who are engaged in matters that have tax implications have relevant training and experience. OTIS ensures its tax obligations are met in accordance with applicable laws, rules and regulations by (1) seeking external tax advice, where appropriate, (2) investing in staff training, and (3) periodic review of its processes and framework to address new and emerging risks.

OTIS takes advice from independent external tax, legal and accounting firms to ensure that our risk management decisions are based upon the latest and most relevant interpretations of laws and regulations

Relationship with HMRC

OTIS endeavours to build a positive relationship with HM Revenue & Customs (“HMRC”) by working in an open, constructive and timely manner and in a spirit of co-operative compliance. Given that tax laws can be complex and ambiguous, tax outcomes are inherently uncertain leading, inevitably, to areas of differing legal interpretation. Therefore, where appropriate, OTIS engages in proactive discussions with HMRC to obtain early resolution of material issues and eliminate uncertainty.

OTIS’s UK entities are committed to timely submission of accurate tax computations and returns in compliance with all tax laws and regulations in the UK and elsewhere.

This statement is published on behalf of OTIS Worldwide Corporation and its affiliated UK entities and is approved by its Top-Level Management, including all SVPs of Legal / Tax / Accounting / Controllers and UK local management.

December 2024
 

The publication of this statement is regarded as satisfying the statutory obligations, for the current financial year ended 31st December 2024, under Paras 19(2) and 22(2), Schedule 19, Finance Act 2016 for the OTIS UK group.