Cabot Corporation U.K. Tax Strategy Scope Cabot Corporation (NYSE: CBT) is a publicly traded multinational enterprise with operations throughout the globe, including within the United Kingdom (U.K.). This strategy applies to the U.K. entities within the Cabot Corporation group in accordance with Schedule 19 of the Finance Act of 2016 (the Schedule). A list of entities to which it applies is set out below. In this strategy, references to ‘Company,’ ‘Cabot’ or the ‘group’ refer to these entities. In accordance with the Schedule, this strategy is available on Cabot Corporation’s publicly accessible website (cabotcorp.com). References to ‘U.K. Taxation’ are to the taxes and duties set out in paragraph 15(1) of the Schedule, which include Income Tax, Corporation Tax, Pay As You Earn Tax (PAYE), National Insurance Contributions (NIC), Value Added Tax (VAT), Insurance Premium Tax and Stamp Duty Land Tax. References to ‘tax,’ ‘taxes’ or ‘taxation’ are to U.K. Taxation and to all corresponding worldwide taxes and similar duties in respect of which Cabot has legal responsibilities. This strategy was adopted by the group effective October 1, 2016 and applies from the date of publication until it is superseded.
Aim Cabot is committed to full compliance with all statutory obligations and full disclosure to tax authorities. The Company’s tax affairs are managed in a way that takes into account the Company’s wider corporate reputation in line with Cabot’s overall high standards of corporate governance. Cabot’s values, which are incorporated in our Code of Business Ethics 1, are the foundations for our approach to taxation.
Effective risk management and governance Cabot manages risks to ensure compliance with legal requirements in a manner that ensures payment of the required amount of tax. The level of risk that Cabot accepts is consistent with its overall objective of achieving certainty in its tax affairs. Cabot seeks to fully comply with its regulatory and other obligations and act in a way that upholds its reputation as a responsible corporate citizen. Cabot management is primarily responsible for day-to-day risk management practices, with management of Cabot’s tax affairs delegated to Cabot Corporation’s Vice President, Tax (VP Tax) and Cabot’s finance teams. The VP Tax reports to Cabot Corporation’s Chief Financial Officer and together they update the Board on Cabot’s tax affairs and risks during the year. This strategy is supported by an internal control framework that governs the operations of the Company, with control compliance subject to regular reviews by Cabot Corporation’s internal audit department and external auditors.
Cabot Corporation U.K. Tax Strategy Attitude towards tax planning and level of risk Cabot’s tax strategy follows the principles of Cabot Corporation’s global Code of Business Ethics. We maintain a strict values-based policy of compliance with all applicable tax laws and regulations of the jurisdictions in which the Company operates. Consistent with those principles, when structuring our commercial activities, we will consider, among other factors, the tax laws of the countries in which we operate, with a view toward maximizing value on a sustainable basis. Any structuring that is undertaken will have commercial and economic substance, with full regard to potential impacts on our reputation as a responsible corporate citizen. Cabot’s processes, policies and governance operate to ensure compliance with tax laws and regulations in jurisdictions in which we operate, and are designed to identify and mitigate material tax risks. Due to the complexity of tax laws, we routinely receive advice from outside tax advisors to ensure we are in compliance with local tax laws and regulations.
Working with HM Revenue & Customs (HMRC) Cabot believes it has a transparent and constructive relationship with HMRC, with meetings and communications as and when required to discuss developments in our business, current, future and retrospective tax risks, and interpretation of the law in relation to all relevant taxes. Cabot seeks to ensure that HMRC is advised of significant transactions and changes in Cabot’s business. When submitting tax computations and returns to HMRC, Cabot endeavors to disclose all relevant facts. Cabot also works with outside tax advisors to ensure that Cabot is informed of changes in U.K. tax laws relevant to Cabot’s business and to ensure productive and mutually beneficial interactions with HMRC.
Page 2 of 3
Cabot Corporation U.K. Tax Strategy List of entities covered by this tax strategy
Cabot UK Holdings Limited Cabot UK Holdings III Limited Cabot G.B. Limited Cabot Carbon Limited Cabot Plastics Limited Cabot Specialty Fluids North Sea Limited Cabot Specialty Fluids Limited Cabot U.K. Limited Cabot UK Holdings II Limited Cabot Performance Materials UK Ltd. Cabot Activated Carbon UK Limited Cabot Activated Carbon Holdings UK Limited Norit (UK) Holding Limited Cabot Norit (UK) Limited Purton Carbons Limited Anglo-Dutch Waters Carbons Limited Botsel Limited
Page 3 of 3