Introduction
discoverIE is an international group of businesses that designs and manufactures innovative electronic components for industrial applications. The Group provides application-specific components to original equipment manufacturers internationally. The Group employs c.4,500 people in around 20 countries and its principal operating units are located in Continental Europe, the UK, China, Sri Lanka, India and North America.
discoverIE is headquartered in the UK and has a decentralised structure comprising locally-managed, autonomous operating businesses which operate within a control environment set at Group level. It has a small head office which incorporates support functions including legal, finance, treasury and tax.
Through its activities across the world, discoverIE contributes to governments and wider society through various taxes such as corporate income taxes, duties, payroll taxes and also indirectly through VAT and sales taxes levied on goods sold to customers.
This document sets out the tax strategy of discoverIE. It summarises the Group’s approach to conducting its tax affairs and dealing with tax risk.
discoverIE manages its tax affairs in accordance with the following objectives:
- compliance with relevant tax law in the jurisdictions in which the Group operates;
- managing the Group’s tax liabilities in a manner that is consistent with its attitude to commercial risk, taking into account the Group’s tax attributes and the geographic markets in which it operates; and
- communicating with tax authorities in a transparent and professional manner.
Overview of internal governance and risk management
The Group Audit and Risk Committee sets the risk management framework which aims to mitigate the adverse impact of material risks to the business. Amongst these is the risk of failing to comply with the Group's tax obligations, potentially resulting in:
- Reputational damage;
- Behaviour that is inconsistent with the Group's environmental, social and governance strategy; and/or
- The financial cost of paying too little - or too much - tax.
The above risks could adversely impact the Group and its stakeholders, which include shareholders, governments, employees, customers, suppliers and the communities in which the Group operates.
To this end, the Board has approved this Tax Strategy to set the parameters within which the Group operates. The member of the Board responsible for tax is the Group Finance Director, who ensures that the tax affairs of the Group are conducted in line with this Strategy and that the Board is kept abreast of the Group's tax affairs.
The Group has a Tax Policy that sets out the responsibilities of its operating businesses and the situations in which approval from Head Office is required. Compliance with this policy is monitored by the tax function, which the businesses also confirming their compliance.
The Group is committed to ensuring that it meets the compliance obligations under the UK’s legislation regarding the corporate criminal offence (“CCO”) of failure to prevent the facilitation of tax evasion and, as such, has a formal CCO Policy in place.
Attitude and approach to risk
discoverIE is averse to exposing itself to reputational, regulatory and compliance risk, while being more open to risks relating to the pursuit of innovating our products, building our customer base and increasing our competitive strength in the market.
The Group’s tax function has clear accountabilities up to and including the Board for the management of tax compliance risk and tax planning. Tax risks are assessed by the Audit and Risk Committee and form a part of the Group Risk Register, which is reviewed by the Board as part of risk management governance.
The Group seeks to minimise exposure to material tax risk through the employment of suitably experienced professionals together with additional support from specialist professional firms, both in the UK and internationally, where required. The Group monitors developments in local and international tax law, adapting to any changes where necessary.
As the Group continues to grow through acquisitions, the tax function undertakes thorough pre-acquisition tax due diligence and applies its framework of tax controls and oversight as part of the integration of new businesses into the Group.
Appetite for tax planning
Any tax planning undertaken supports business activity and is consistent with the Group's commercial objectives, tax legislation, legal obligations and ethical standards. We recognise that paying tax is an important part of our contribution to society and therefore we do not undertake aggressive tax planning, the sole purpose for which would be obtaining a tax advantage.
The Group recognises its responsibility to shareholders to ensure the tax affairs of the organisation are managed as efficiently as possible by making legitimate use of benefits, exemptions and incentives that may be available.
Innovation is central to our business and we claim tax incentives for research and development. We involve our engineers in the preparation of such claims and external advisers are also consulted, where appropriate.
Approach to relationship with tax authorities
The Group is committed to building open relationships and to following a policy of transparency with tax authorities to remove uncertainty from its business transactions and to settle its tax affairs in a timely manner. The Group has worked with HMRC to receive a "low risk" rating.
Where the Group considers that a significant risk or uncertainty exists, the Group engages with tax authorities in real time, where practical.
Approved by the Board
of discoverIE Group plc
26 January 2026