PublicUK Tax StrategyMarch 2023

Daiwa Securities Group Inc.

Daiwa Securities Group Inc.
Public | UK Tax Strategy

1Introduction
This UK Tax Strategy has been adopted by all UK entities that are controlled by Daiwa
Securities Group Inc. including:
•••
•••
•

Daiwa Capital Markets Europe Limited (DCME)
DC Advisory Holdings Limited (DCAHL)
Daiwa Corporate Advisory European Holdings Limited (DCAEH)
Daiwa Corporate Advisory Limited (DCA)
Daiwa Sustainable Investments Limited (DSIL)
Daiwa Asset Management (Europe) Limited (DAMEL)
Daiwa Institute of Research Limited – London Branch (DIR)

These entities are collectively referred to as the UK Group for the purposes of this UK Tax
Strategy.
The approach of the Daiwa Securities Group to corporate tax matters is governed by the Tax
Policy enacted by the Group.

Daiwa Securities Group Tax Policy
1. Daiwa Securities Group complies with laws and ordinances, and contributes to thesustainable development of society through appropriate tax payments with high ethicalstandards.
2. Daiwa Securities Group rewards our shareholders by achieving sound profits based on
proper and fair tax planning.
3. For cross border intra group transactions, Daiwa Securities Group sets an appropriate
price, which achieves adequate accountability under transfer pricing tax regulations.
4. The Chief Financial Officer (CFO), executive officer in charge of Finance, and Head ofFinance Department of Daiwa Securities Group Inc. from time to time provide guidance
and advice to subsidiaries and other departments within the group as necessary, so that
corporate governance over tax matters is shared and implemented throughout the Daiwa
Securities Group.

Daiwa Securities Group Inc.
Public | UK Tax Strategy

2Tax Governance and Risk Management in relation to UKtaxation
Ultimate responsibility for the UK tax strategy rests with the Board of each company or senior
management in the case of DIR. The CFO or equivalent position in each company has overall
responsibility for UK taxation matters. For DCME, the day-to day responsibility is delegated tothe Head of Tax who reports to the Deputy CFO. The finance teams or management of theother entities manage the tax affairs on a day-to-day basis with support from DCME.
DCME has an in-house tax team, staffed by qualified and experienced tax professionals. TheHead of Tax is responsible for the management of tax risk. The tax risk management process
is aligned with the company’s overall risk management framework for identifying, managingand controlling risks. The tax team maintains documented policies and procedures withrespect to compliance obligations which are reviewed regularly and updated for changes intax legislation.
For DCME, the Head of Tax reports quarterly on tax matters and key tax risks to the Audit
Committee.
For DCA, DCAEH and DCAHL the CFO and finance team meet regularly with DCME tax teamto ensure compliance with UK tax obligations. The CFO reports at least annually on tax
matters and key tax risks to the Boards of DCA and DCAEH after consultation with the DCME
Head of Tax.
For DSIL the CFO is supported by the DCME tax team as required.
DAMEL senior management manages all the company’s risk including tax. DAMEL issupported by the DCME Tax and Performance & Reward teams in regards to tax.
For DIR, the chief representative manages risk including tax. DIR is supported by the DCME
Tax and Performance & Reward teams in regards to tax.
Attitude towards UK Tax Planning
The UK Group will only undertake tax planning that is aligned with the business strategy andsupports genuine commercial activity. The companies listed above do not enter intoarrangements that would lead to a failure under Part I of the Code of Practice on Taxation for
Banks which has been adopted.
Level of UK tax risk
The UK Group’s appetite for tax risk is low. It does not participate in aggressive tax planningor complex structured arrangements designed to minimise tax liabilities.

Daiwa Securities Group Inc.
Public | UK Tax Strategy

3Tax Compliance and Relationship with HMRCThe UK Group is committed to full compliance with its UK tax obligations. The UK Group
strives for an open, transparent and cooperative relationship with HMRC. This includes atimely tax compliance process in respect of applicable UK taxes and timely response to HMRC
requests or enquiries.
The companies listed above regard this publication as their sub-group or company UK tax
strategy for the year ended 31 March 2023 (complying with their duty under paragraph 19(2)and 20 or 22(2), as appropriate of Schedule 19, Finance Act 2016.