Fagerhult Group tax policy
1. Introduction
Fagerhult Group Tax Policy applies to all companies within the Fagerhult Group. The Fagerhult Group Tax Policy shall be adopted and adhered to in all business activities and decision-making.
The Fagerhult Group Tax Policy shall be in line with the corporate governance rules, policies and principles of the Fagerhult Group. Fagerhult Group has a strong focus on sustainability and corporate responsibility. The Fagerhult Group Tax Policy constitutes an important component of the aforementioned responsibility.
This statement complies with the UK disclosure requirement under Schedule 19 of the UK 2016 Finance Act.
2. Tax Governance, Risk Management and Organization
Responsibility for the Fagerhult Group Tax Policy, the supporting governance framework and management of tax risk is derived to the Fagerhult Group Chief Financial Officer (CFO). The Fagerhult Group CFO works closely with the Group finance team, Group Legal Counsel and the finance directors in each of the group companies to identify, monitor and mitigate tax risks. Fagerhult Group will seek to ensure that people responsible for tax processes or gathering of tax information are suitably qualified and have adequate controls in place in order to ensure that the correct reporting of taxes are executed and that the correct taxes are identified and paid.
Fagerhult Group’s global tax partner is PwC, while the Group’s subsidiaries also might seek advice from other local tax professionals. Fagerhult Group holds regular meetings with PwC and other professionals to ensure that the Fagerhult Group complies with best practice.
The Fagerhult Group CFO and the Group Legal Counsel attend the Fagerhult Group Audit Committee meetings, where any updates on significant tax risks and developments are provided. The Audit Committee reviews and challenges where necessary the tax strategy being pursued by the Fagerhult Group.
The Fagerhult Group Tax Policy is reviewed by the Audit Committee annually.
3. Fagerhult Group Tax Policy
3.1. Legal and Regulatory
The management of taxes in the Fagerhult Group shall be performed in accordance with:
- All relevant laws and regulations, national and international, relevant to taxes applicable for the Fagerhult Group;
- All applicable laws and regulations, national and international, relevant to accounting and bookkeeping; and
- OECDs Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
3.2. Compliance and Reporting
The Fagerhult Group is committed to transparency and accuracy in its tax compliance and reporting, while respecting confidentiality and other applicable obligations. This commitment further entails that the Fagerhult Group shall:
- Ensure full, fair, accurate and understandable tax calculations, reporting, filings and payment of taxes; and
- Ensure that financial reporting is in accordance with IFRS and the Fagerhult Group’s accounting principles.
3.3. Planning and Advisory
Fagerhult Group is committed to create value to its customers and end users of the Fagerhult Group’s products leading to a subsequent creation of value for its shareholders, employees and other stakeholders. Tax will be a result of the business strategy but will not drive the business strategy. The planning and advisory within the area of tax shall seek to adopt tax efficiency and cost optimization within the following parameters:
- Operate in an environment where the Fagerhult Group consider tax in the context of commercial rationale, substance and business purpose;
- Pay taxes in the jurisdiction where commercial activities take place;
- Manage the tax compliance processes and tax governance procedures with diligence and care in a manner in which tax risks and opportunities are duly considered, particularly with regard to major or complex business decisions;
- Tax planning may be undertaken to utilize statutory available tax incentives or reliefs to ensure tax efficiency within the business and commercial environment of the Fagerhult Group, while ensuring these reliefs are applied in accordance with the intent of the legislation;
- Professional external advice may be sought in relation to tax planning or areas of complexity or uncertainty to support the Fagerhult Group in complying with its tax strategy; and
- Consideration shall be given to the Fagerhult Group’s reputation, brand and corporate social responsibilities.
3.4. Relationship with Tax Authorities
The Fagerhult Group is committed to a professional relationship with tax authorities.
The Fagerhult Group shall:
- Respond to tax enquiries and audits in a transparent and responsive manner to minimize uncertainty.
- Handle correspondence with the authorities and tax disputes in a professional and proactive solution-oriented manner.
- Ensure that errors are appropriately disclosed to the tax authorities.
3.5. Tax Transparency
Fagerhult Group shall maintain a principle of openness and responsive when dealing with interested parties outside the Fagerhult Group and society at large. Fagerhult Group shall:
- Fully comply with the relevant tax transparency legislation in all jurisdictions.
- Support initiatives to improve international transparency on taxation matters, including OECD measures on Country-by-Country reporting.
- Not tolerate tax evasion, nor tolerate the facilitation of tax evasion by any person(s) acting on the Fagerhult Group’s behalf.
3.6. Target effective tax rate
Fagerhult Group does not have a target effective tax rate.