SHI International Corp. – UK Tax Strategy

SHI International Corp. is a global provider of Information Technology products and services. The group has grown organically from a $1 million reseller in 1989, to a multi-billion corporation in 2024.

Headquartered in central New Jersey, SHI has over 30 offices throughout the US, Canada, Asia, and Europe and employs over 6,000 people.

This statement sets out the UK tax strategy of SHI Corporation UK Limited (SHI Ltd), including its approach to tax risk management, attitude towards tax planning, and working with HMRC.

The publication of this statement is regarded as fulfilling the entity’s obligations under Paragraph 22(2) Schedule 19 Finance Act 2016 to publish its UK tax strategy for the financial year ended 31 December 2024.

Approach to tax risk management

SHI Ltd began trading in April 2020. The UK permanent establishment of SHI International Corp. (SHI PE), which has historically been the trading permanent establishment of SHI International Corp., has now been wound down. Therefore, only SHI Ltd is within the scope of UK taxation.

SHI Ltd is, therefore, subject to a range of UK taxes on its UK activity, including payroll taxes, corporation tax, and VAT. The Director of SHI Ltd is committed to acting responsibly through compliance with UK tax law, regulation, and disclosure requirements in respect of SHI Ltd by:

  • Paying the right amount of tax at the right time;
  • Filing complete and accurate returns on a timely basis;
  • Seeking to utilize available tax reliefs and incentives where available in a manner that is consistent with the government's policy objectives; and
  • Working with professional advisors in the UK to ensure compliance with UK tax law and practice.

The overall responsibility for the tax strategy of SHI Corporation UK Limited rests with the Director of the company, who is based in the United States. The day-to-day management of SHI Ltd's tax affairs is undertaken by SHI Ltd's finance team. The finance team consults with external advisers to provide local expertise when it is required.

Attitude towards tax planning

SHI Ltd does not have a Code of Conduct regarding taxation but will consider a range of factors, including the tax laws of the countries in which it operates, when deciding upon the structure of commercial activities. Transactions are not structured in ways that result in tax implications that are inconsistent with their underlying economic consequences.

SHI Ltd only partakes in transactions that relate to genuine commercial activity with economic substance. The entity does not participate in artificial tax avoidance schemes that aim to reduce UK or overseas tax liabilities.

Where a transaction is considered, the finance team will consult with external advisors to understand the tax implications of the transaction. Where the transaction may result in adverse tax consequences the finance team will look for alternative ways to structure the transaction to achieve the same commercial outcome without the adverse tax consequences.

The finance team uses external advisors to help them legitimately mitigate their tax liabilities, utilizing tax reliefs that are available (such as capital allowances and annual investment allowances) in the most efficient way.

Level of tax risk accepted

SHI Ltd adopts a responsible and proactive approach to tax affairs and will only accept a low level of risk. Where tax risks are identified, they are managed openly and ethically, with advice from external advisors where this is required.

Working with HMRC

SHI Ltd works with external advisors to ensure tax filings and tax payments are made on time. SHI Ltd does not have a Customer Compliance Manager or other dedicated contact with HMRC but acts collaboratively in an open and transparent manner in all dealings with HMRC. If faced with uncertainty as to the application of certain tax laws, a proactive approach of engaging with HMRC in advance of undertaking any transactions may be adopted to confirm the correct application of tax law.

SHI Ltd only partakes in transactions that relate to genuine commercial activity with economic substance. The entity does not participate in artificial tax avoidance schemes that aim to reduce UK or overseas tax liabilities.

This strategy is owned and approved by the Director of SHI Corporation UK Limited.

December 31,2024