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UK Tax Strategy
Terminix’s Tax Strategy – Year Ended December 31, 2021
At Terminix, the main focus of our tax strategy is to ensure that all entities, whether foreign or U.S., remain compliant with specific and applicable tax laws in each jurisdiction in which they operate. The submission of tax filings and remittance of tax liabilities on a timely basis forms an integral part of this strategy. We are committed to complying with UK tax obligations and making sure that the tax strategy of our UK entities is aligned closely with that of the ultimate parent company of Terminix, a U.S. publicly traded company on the New York Stock Exchange.
Risk Management and Governance
Terminix’s corporate governance functions, including the Chief Financial Officer, the Vice President of Tax, the Audit and Finance Leadership, as well as the Treasury and Legal departments, understand the vital importance of maintaining ongoing and regular dialogue regarding the company’s tax processes and ever-changing legislative and regulatory requirements. It is the task of the Tax Department to ensure that we have in-house professionals and sufficiently trained personnel, as well as stringent internal controls and computer systems that effectively track and manage all tax matters to mitigate/minimize any tax risks. Training webinars, as well as off-site educational opportunities are made available to employees to ensure proper instruction with the ever-changing tax environment. Terminix frequently uses the expertise of professional external providers of tax services in the local country of operation to ensure that all jurisdictional laws are complied with and all filing deadlines are timely met. We have a working relationship with our tax provider in the UK and review/discuss all tax filings that are prepared through them.
Terminix seeks to minimize risks by a strong commitment to comply with all UK tax laws and regulations, in addition to general guidelines and procedures for risk management (including Sarbanes- Oxley and FIN 48) that are in place for all public multinational companies.
It is assuredly in Terminix’s best interest to have certainty in tax planning and in all tax matters. As such, the Tax Department bases all tax decisions on sound principles and guidance from the tax divisions of each local government. To balance our responsibilities to shareholders and customers alike to operate efficiently, we may utilize tax incentives or tax efficiencies where appropriate if they are aligned with the intended objectives of the governing body and our business and operational objectives. Terminix Tax Department partners with other areas of the business to ensure that tax considerations are addressed in all business initiatives. As this relates to UK tax planning, we may seek external advice regarding areas of complexity or uncertainty to assure that we are being good stewards, not only to our shareholders, but to ensure that we are compliant to the UK tax authorities.
Relationship with HMRC (Her Majesty’s Revenue & Customs)
Terminix is open and transparent when associating with HMRC. Since our tax filings and payments are timely and we strive to remain compliant with all HMRC tax regulations, we have limited and/or routine communications with them.