GC’s Tax Policy encompasses Tax Code of Conduct, Tax Risk Management and Tax Transparency. The tax policy has been approved by Chief Executive Officer (CEO) who is the respective board representatives.
Tax Codes of Conduct
- Compliance: We act at all times in accordance with all applicable laws and is guided by relevant international standards and we aim to comply with the spirit as well as the letter of the law wherever the company operates.
- Corporate Ethics: Our Tax Code of Conduct is based on our Corporate Governance and Business Code of Conduct, which requires that our business be transacted in accordance with a high standard of corporate conduct appropriate to our standing as a major company with worldwide operations.
- Transfer Pricing: We aim to pay an appropriate amount of tax according to where value is created within the normal course of commercial activity. Any transfer pricing is always calculated using the ‘arm’s-length’ principle.
- Tax Structuring: We have a responsibility to our shareholders to be financially efficient and deliver a sustainable taxation that enhances shareholder value.
- Sustainable Company Taxation:We have a responsibility to our shareholders to be financially efficient and deliver a sustainable taxation that enhances shareholder value.
- Tax Incentivesin line with the objective of tax efficiency, we will seek to make use of legally available tax incentives, within the context of sound and sustainable business decision-making. Incentives may include tax holidays, accelerated asset allowances or other incentives. All are in the context of national or local tax policy and would generally be available to any business that meets the relevant criteria. These incentives may influence our business decision making, but are only one of a range of economic factors taken into account.
- Relationships with tax authorities:: We respect the right of governments to determine their own tax structures, rates of tax and collection mechanisms. We seek an open and constructive dialogue with the tax authorities in pursuit of professional and constructive working relationships.
Tax Risk Management
- Process Compliance: We commit to act responsibly in relation to our tax affairs. This means that we comply with the tax laws and regulations of each country in which we operates. Where tax laws do not give clear guidance, prudence and transparency shall be the guiding principles.
We, furthermore commit to be globally compliant in timely, accurate and complete filing of tax returns and striving to avoid adjustments, fines and interest costs.
Our economic contribution, of which tax forms a part, is important and we aim to ensure that we pay the right and proper amount of tax in each country in which we operate.
Operational controls apply to all processes relating to the management of tax liabilities for which tax is accountable.
- Monitoring & Reporting: We commit to appropriate internal and external tax monitoring and reporting to the related business units and accurate representation of tax expenses.
- Reputational Risk: We are committed to effectively monitor and manage compliance and reputational risks related to our tax affairs. We periodically review the quality and integrity of tax arrangements, as well as the accuracy and comprehensiveness of tax data, tax returns and reported results regarding tax provisions, exposures and deferrals. We have guidelines for the consideration of foreign investment to refrain from investing in jurisdictions that considered to be Tax Havens, in order to avoid tarnishing the tax reputation of the organization.
We are committed to an open and transparent principle based approach towards taxation.
Transparency to Tax Administration
- For us this means, first of all, tax transparency to tax administrations where full disclosure will be given to fulfill all regulatory requirements in all jurisdictions we operate in.
- This includes information necessary to properly understand entries in a tax return and information specifically requested during tax audit enquiries. In this context, we ensure that proper documentation is kept to meet local tax requirements.
Transparency to Other Stakeholders
- We are furthermore committed to tax transparency responsibilities towards our stakeholders in the widest sense in line with our sustainability approach. In that spirit of transparency and continued disclosure, we have decided to publish our tax strategy and tax policies.
- We are transparent on our approach to tax and put forward understandable, timely and transparent communication about our tax strategy and tax policies. We believe that this tax transparency is a cornerstone of good tax governance.
- Furthermore, we endeavor to ensure that we are appropriately transparent on our economic contribution in order to provide greater insight and clarity to stakeholders and societies where we operate.