SPX Technologies is a supplier of highly engineered products and technologies, holding leadership positions in the HVAC and detection and measurement markets. Based in Charlotte, North Carolina, SPX Technologies had over 1.7 billion in annual revenue in 2023 and approximately 4,100 employees in 15 countries. HVAC solutions offered by our businesses include package cooling towers, residential and commercial boilers, comfort heating, and ventilation products. Our detection and measurement product lines encompass underground pipe and cable locators and inspection equipment, fare collection systems, communication technologies, and specialty lighting.
Approximately 84% of third party revenues were generated in the United States during 2023 and 88% of tangible long-lived assets were located and owned in the United States. We have various businesses operating in the UK, the largest of which is the underground locator and inspection equipment business within our detection and measurement segment.
We comply with the tax law and practice in all of the territories in which we operate, including the UK. Compliance for us means paying the right amount of tax in the right place at the right time, and involves disclosing all relevant facts and circumstances to the tax authorities, claiming reliefs and incentives where available, and operating in-line with our commitment to this strategy.
The publication of this strategy statement is regarded as satisfying the statutory obligation under Para 16(2), Schedule 19, Finance Act 2016 for SPX Technologies and subsidiaries.
Responsibility for tax governance and strategy lies with the Chief Financial Officer, with oversight of the Board of Directors and the Audit Committee.
Our tax strategy is applied consistently to all companies within the UK and the worldwide group.
Our tax strategy is informed by and built upon the “SPX Technologies Code of Business Conduct”. Specific applicable sections include:
- We Comply with the Law
- We are Fair in our Business Dealings
- We Respect SPX and Each Other
- We Act with the Highest Standards of Ethics and Integrity
Our tax strategy is supported by an internal control framework as required by the Sarbanes–Oxley Act of 2002 (Pub.L. 107–204, 116 Stat. 745) and is subject to regular review by our internal audit department and external auditors.
Day to day responsibility for the application of the tax strategy and the management of tax affairs is delegated to the Vice President Tax, who is required to report bi-weekly to the Chief Financial Officer. The Vice President Tax is supported by a team of qualified in-house tax professionals who help identify, manage, and where possible, eliminate risk.
The Tax Group relies on external advisers for guidance and support in certain situations where a specialist is merited due to the complexity or uncertainty of a transaction or the relevant tax law. Our Tax Group also relies on external advisors in certain locations outside the United States where activities revolve around more routine compliance matters or are otherwise insufficient to warrant a full-time tax resource. However, responsibility for tax positions taken remains with SPX Management.
We view paying and collecting taxes as an important part of our role as a business and our contribution to society, along with meeting local reporting and disclosure requirements. We pay the right amount of tax, in the right place at the right time. We understand and take seriously our responsibility to pay our tax liabilities in each of the key jurisdictions in which we operate.
Specifically, SPX Technologies:
- Only engages in tax planning that is aligned with commercial and economic activity and does not lead to an abusive result. We will not put in place any arrangements that are contrived or artificial.
- Interprets tax laws in a way consistent with what we believe to be the intent of the relevant tax and legislative authorities.
- May utilize tax incentives and exemptions when aligned with our operational objectives and the intended policy objectives of the jurisdiction.
Given the scale and complexity of our business and the number of jurisdictions in which we operate, risks can arise related to the interpretation of tax law. We actively seek to identify, evaluate, monitor, and manage these risks to ensure alignment with our objectives. Where there is significant uncertainty or complexity in relation to a risk, external advice may be sought, particularly in relation to our international tax obligations.
Our approach to tax risk follows the same principles that we apply to other business risks. We consider legal and social responsibilities, our reputation and the financial impact of those risks. We do not have a predefined limit of the amount of acceptable risk. Instead, we judge each case on an individual basis. Part of our assessment includes the relevant tax authority’s view of a position taken and the potential impact on our ongoing relationship with that tax authority.
It is our intention to comply with our global tax filing, reporting, and payment obligations.
We attempt to engage collaboratively with tax authorities to achieve early agreement on disputes.
It is our goal to resolve disputed matters through active and transparent discussion; however, we are prepared to litigate in situations where we disagree with a ruling or a decision of a tax authority.
We engage with all tax authorities with honesty, integrity, respect, and fairness. We remain open and transparent with tax authorities regarding our affairs and are committed to providing relevant and necessary information for those authorities to review potential tax risks.