“With our longstanding practice of Good Corporate Governance, GC is committed to be transparent, responsible and accountable in all tax matters, aiming to build sustainable trust with stakeholders and societies where we operate.”

In support of our overall business strategy and objectives, GC pursues a tax strategy that is principled, transparent and sustainable in the long term. We have established principles governing our strategy and related tax policies, which have been the result of a longstanding GC practice.

Mr. Grisada Boonrach, Chairman of the Risk Management Committee has given precedence to risk management including taxation risks. The Management reported the progress of risk management activities to the BOD on a regular basis. Additionally, the Audit Committee reviews the effectiveness of risk management based on business performance reports, internal audit reports and auditor reports. These could reasonably assure that the Company would be able to mitigate potential risks down to acceptable level.

We are committed in our responsibility towards our stakeholders in the widest sense and we set our ambition on ensuring sustainable continuity, proper business and commercial rationale in our daily practice, including proper management of resources and flexibility of management to face the increasingly complex international taxation landscape.

In that spirit, our tax policies consist of three pillars:

Tax Management

GC implements the tax management based on tax strategy as above mentioned as follows.

Tax Code of Conduct

Tax Compliance

GC aims to ensure that our tax management is complied with tax laws and regulations. We provide and update Tax Procedures to tax operational areas and also launch Tax Alert of new tax legislation and any interpretation of existing legislation and deliver to the companies under GC group in Thailand to support their works as well as ensuring tax compliance.

To control efficient tax process, we apply Control Self-Assessment (CSA) aligned with internal control policy to identify tax risks and key controls, assess the effectiveness of existing controls, and monitor control deficiency or mitigation practice and also communicated and deployed the CSA to the domestic subsidiaries & JVs.

We take an opportunity of available financial technology and global trend to enhance Group’s agility by developing overall tax compliances. Tax automation via web application was built to support in this regard. These include tax compliance monitoring, updated relevant law and regulations, lesson learn from tax audit, tax knowledge sharing, tax advisory and automated Corporate Income Tax (CIT) calculation system. We enhance an automatic system to boost accuracy and efficiency through e-platform which the tax information is automatically transferred to the Thai Government Agencies such as e-filing, e-Tax Invoice & e-Receipt and e-Withholding Tax (WHT) system. Furthermore, we implement Robotic Process Automation (RPA) which is an automate rule-based processes through intelligent automation for Finance & Accounting function. Our RPA roadmap includes automated tax transactional processes to mitigate compliance risk of Value Added Tax (VAT), WHT, and Excise Tax.

Tax Governance

GC Tax Strategy and Tax Policy have been endorsed by the Management Committee and CEO, there presentative of Board of Directors. GC has appointed the Tax Strategy and Planning Division and Tax Management Division to be responsible for the development and implementation of tax matters and providing assurance based on our tax compliance and management.

We strengthen Tax Governance, Policy and Guidelines by deployment of the Policy and Guidelines to the Group in line with launching and monitoring Tax Compliance Checklist with local tax laws to domestic subsidiaries & JVs annually. We set Assurer team to conduct Finance & Accounting Governance to ensure the standardization practice across the Group. In addition, we shall deploy related digital governance to ensure digital solutions for Finance & Accounting. This includes effective tax automation process that complied with relevant standards and regulations.

We comply with Transfer Pricing Act in Thailand which has been enforced starting from 1 January 2019 by completed Local File in this regard. Our international subsidiaries & JVs also completed the Local File according to their local regulations. We have supported PTT to complete Master File and Country-by-Country Report (CbCR) in order to group’s compliance. Surrogate Parent Entity (SPE) in U.K. has been appointed to submit CbCR on behalf of PTT group. Furthermore, we monitor Transfer Pricing to ensure that the Group’s policy is appropriately aligned with Arm’s length principle.

Tax Risk Management

GC Group applies Tax Risk Management Guideline including Tax Control Framework referencing COSO framework. We perform annually Tax Risk Assessment and monitor mitigation plan. We focus on Transfer Pricing Risk and set process and guideline in place to manage and monitor on this matter among the Group.

We provide the long term plan of Tax Health Check for every five-years for subsidiaries and JVs. On this aspect, we engage external tax advisor to review the accuracy of tax filing, process and provide expert recommendation for effective compliance of the Group. In accordance with our commitment to develop the tax competency, we set plan of tax learning program for Finance & Accounting staff in both tax strategy and planning and operational areas. The program is classified into three levels: i) Basic, ii) Intermediate and iii) Advance, to offer variety of tax courses for Tax Professional Team. These enable participants to apply the knowledge gained during training and knowledge sharing to their works. The knowledge sharing portal was created to store the training material and for self-learners to access to the training course.

With regard to foreign investment, we place an awareness on tax reputation risk and commit to avoid an investment through jurisdictions considered as tax havens under BEPS Action5: Harmful Tax Practices and disclosed the foreign investment guideline to serve this policy on website.

Tax Transparency

We disclosed all regulatory requirements in all jurisdictions we operate in. We also publish our tax strategy and policies to put forward understandable, timely and transparent communication to our stakeholders.