Mativ - Tax strategy

Mativ Holdings, Inc. (“Mativ”) is a leading global provider of engineered solutions and advanced materials. The group is headquartered in the US and has six sites in the UK. Mativ contributes both direct and indirect taxes in the UK, including corporation tax, PAYE income tax, national insurance, and VAT.

Risk management and governance

The tax function is managed by the Vice President, Global Tax, based in the US, with support from other members of the tax and wider finance teams. External advice is taken where appropriate in order that fully documented positions are taken prior to the filing of tax returns. Mativ complies with all applicable laws, regulations, and disclosure requirements in relation to tax, exercising professional care and judgement in relation to decisions reached.

Attitude towards tax planning

Mativ is committed to operating transparently, responsibly, and does not seek to enter into artificial tax avoidance transactions. When undertaking commercially driven transactions, Mativ seeks to implement such transactions in a tax-efficient manner and in accordance with the relevant tax legislation. Mativ takes a holistic view of transfer pricing to ensure that margins between related parties are at arm's length and representative of the economic value added. Mativ reports and discloses tax positions in accordance with applicable regulations and requirements. Further, Mativ avails itself of tax incentives to the extent available under relevant tax legislation.

Tax risk

The main tax risks faced by Mativ include the following:

  • Incomplete or inaccurate completion of tax returns
  • Incorrect recording of tax balances
  • Commercial projects undertaken with insufficient tax advice
  • Ever-changing global tax rules and regulations

Systems and processes are in place to mitigate these risks which are reviewed on a routine basis. The risks are managed as part of the Company's overall risk management framework and supported by internal audit.

The tax team collaborate with colleagues across the business at the start of projects to ensure that tax costs and tax risks are taken into consideration as part of any decision-making process. Where possible, and in order to mitigate risk, Mativ aims to achieve certainty on the tax treatment of transactions — this may involve reaching advanced agreement with tax authorities (e.g., in relation to transfer pricing).

Relationships with HMRC

Mativ seeks to maintain good relationships with tax authorities in all jurisdictions in which it operates. In the event of disputes with local tax authorities as regards an issue of tax law, Mativ aims to reach resolution as quickly as possible. However, the group will aim to defend its position robustly, particularly where professional advice has been received, given the duty to protect shareholder value. This tax strategy is reviewed annually. The publication of this tax strategy is in compliance with Mativ’s duty under paragraph 16(2), Schedule 19, Finance Act 2016.

UK Tax Strategy Disclosure [PDF]