Invacare's Approach to Tax
Effective Date: Tue 22, 2020 Last updated: Tue 22, 2020
Invacare Corporation, and subsidiaries, are a leading manufacturer and distributor in its markets for medical equipment used in non-acute care settings. At its core, the company designs, manufactures and distributes medical devices that help people to move, breathe, rest and perform essential hygiene. The company provides medical device solutions for congenital (e.g., cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g., stroke, spinal cord injury, traumatic brain injury, post-acute recovery, pressure ulcers) and degenerative (e.g., ALS, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly, bariatric) ailments. The company's products are important parts of care for people with a wide range of challenges, from those who are active and heading to work or school each day and may need additional mobility or respiratory support, to those who are cared for in residential care settings, at home and in rehabilitation centers.
Invacare is committed to providing medical products that deliver the best clinical value, which promote recovery and active lifestyles for people requiring non-acute care. Yes, You Can.® continues to be the company's global tagline as it is indicative of the "can do" attitude of many of the people who use the company's products. In everything it does, the company strives to leave its stakeholders with its brand promise - Making Life's Experiences Possible™.
Our business activities generate a substantial variety of taxes. We pay corporate income taxes, property, stamp duties, employment and other taxes. In addition, we collect and pay employee taxes as well as indirect taxes such as sales, excise, duties and VAT. Invacare, as a good corporate citizen, is committed to complying with tax laws in a responsible manner and to having open and constructive relationships with tax authorities. Invacare’s code of conduct sets out what is expected of everyone at Invacare and our approach to tax conforms to that code of conduct. Our commitment is underpinned by the following principles:
- Tax planning
We engage in efficient tax planning that supports our business and reflects commercial and economic activity. We do not engage in artificial tax arrangements. We adhere to relevant tax law and we seek to minimize the risk of uncertainty or disputes. We conduct transactions between Invacare group companies on an arm’s-length basis and in accordance with current OECD principles.
- Relationships with governments
We seek to maintain positive relationships with governments and fiscal authorities worldwide that are constructive and based on mutual respect. We work collaboratively wherever possible with fiscal authorities to resolve disputes and to achieve early agreement and certainty.
We support the principle behind multilateral moves towards greater transparency that increase understanding of tax systems and build public trust.
- Tax risk management
As part of our internal control processes we identify, assess and manage tax risks and account for them appropriately. We implement risk management measures including controls over our compliance processes and monitor their effectiveness. Oversight of tax risk is accomplished because the Tax Department provides reports on a periodic basis to the CFO and the Audit Committee on how tax risks are managed, monitored and what improvements are being made.
The Vice President of Tax owns and implements our tax strategy which is presented to the Invacare Audit Committee. The VP is also responsible for ensuring that policies and procedures that support the strategy are in place, maintained and used consistently around the world, and that the tax team has the skills and experience to implement the strategy appropriately. In particular, all business events that may lead to a significant tax risk are reviewed and approved and where tax treatments are uncertain, professional advice is sought from external tax advisors as appropriate. Finally, overall tax compliance is monitored through normal reporting cycles. Our tax strategy is applicable across the Invacare group.
This document is on behalf of all qualifying entities in the Invacare group pursuant to Paragraphs 19(2) and 22(2) Schedule 19, Finance Act 2016 and is intended to comply with all other obligations within Schedule 19 Finance Act 2016. We review and update (if required) this document on an annual basis. It was last approved by the Chief Financial Officer on 31 December 2018.