TOMRA Group Tax Policy applies to all TOMRA companies, and all employees in TOMRA are obliged to adopt and follow the Group Tax Policy in all business activities and decision-making.
The Global Tax Policy shall be in line with TOMRA Group corporate governance. TOMRA Group has a strong focus on sustainability and corporate responsibility and view responsible administration and payment of taxation as an integral part of our business. TOMRA intends this statement to satisfy any statutory responsibilities it may have to disclose its approach to the management of taxes.
In particular, this statement complies with the UK disclosure requirement under Schedule 19 of the UK 2016 Finance Act. The Global Tax Policy is applicable for the accounting year ended 31 December 2018.
2. Tax Governance, Risk Management and Organization
Responsibility for the TOMRA Group Tax Policy, the supporting governance framework and management of tax risk ultimately sits with the TOMRA Group Chief Financial Officer (CFO). TOMRA Group CFO works closely with the Group Controller and business area CFOs to identify, monitor and mitigate tax risks. TOMRA 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 amounts of taxes are identified and paid.
TOMRA Group’s global tax partner is PWC, while the Group’s subsidiaries also might seek advice from other local tax professionals. TOMRA Group holds regular meetings with PWC and other professionals to ensure the Group continues to comply with best practice.
TOMRA Group CFO and Group Controller attend 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 Group. The Group Tax Policy is reviewed by the Audit Committee annually.
3. Group Tax Policy
3.1. Legal and Regulatory requirement
The management of taxes in TOMRA Group shall be performed in accordance with:
- All laws and regulations relevant to taxes applicable for TOMRA Group, nationally and internationally.
- All laws and regulations relevant to accounting and bookkeeping, nationally and internationally.
- OECDs Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
3.2. Tax Compliance and Reporting
TOMRA Group is committed to transparency and accuracy in its tax compliance and reporting, while respecting confidentiality and other applicable obligations. TOMRA Group shall:
- Ensure full, fair, accurate and understandable tax calculations, reporting, filings and payment of taxes.
- Ensure that financial reporting is in accordance with IFRS and TOMRA Group’s accounting principles.
3.3. Tax Planning and Advisory
TOMRA Group is committed to sustainable value creation for its shareholders, other stakeholders, and the communities where it operates. Tax will be a result of the business strategy but will not drive the business strategy. TOMRA Group’s tax planning and advisory shall seek to adopt tax efficiency and cost optimization within the following parameters:
- Operate in an environment where we 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 Group, while ensuring these reliefs are applied in consistence 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 Group in complying with its tax strategy.
- Consideration shall be given to TOMRA Group’s reputation, brand, corporate social responsibilities, as well as the expectations from its key stakeholders.
3.4. Relationship with Tax Authorities
TOMRA Group is committed to a constructive, professional, and transparent relationship with tax authorities, based on the concept of integrity, collaboration, and mutual trust. TOMRA 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
TOMRA Group shall maintain a principle of openness and responsive when dealing with interested parties outside TOMRA Group and society at large. TOMRA 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 and automatic exchange of information.
- Not tolerate tax evasion, nor tolerate the facilitation of tax evasion by any person(s) acting on the Group’s behalf.
3.6. Target effective tax rate
TOMRA Group does not have a target effective tax rate.