Approach to Tax: Tax Strategy & Tax Principles
AkzoNobel’s tax strategy is to manage its income tax and other tax positions for the group in a sustainable matter and at acceptable risks. In doing so, the aim is to be in control over the tax processes to remain fully compliant in an efficient way.
More information and explanation can be found in the document link: AkzoNobel’s approach to tax
AkzoNobel’s tax strategy is based on our tax principles. AkzoNobel has built a very strong foundation for sustainability and is recognized as a frontrunner in its industry. A coherent and responsible position on tax is an essential element of our sustainability strategies. AkzoNobel considers the taxes it pays a contribution to the communities in which it operates. This is an integral part of AkzoNobel’s sustainability strategy and its social responsibilities.
In that context, AkzoNobel has adopted the following tax principles:
Taxes are paid in accordance with all relevant rules and regulations in the countries in which AkzoNobel operates. AkzoNobel aims to comply with both the spirit and the letter of the law. Compliance is monitored through a Tax Control Framework. Additionally, also in managing tax affairs, employees must adhere to the AkzoNobel Code of Conduct.
Tax follows business, and profit is allocated to countries in which value is created, in accordance with domestic and international rules and standards (such as the OECD Guidelines) and applying the at arm's length principle. AkzoNobel does not seek to avoid taxes through “artificial” structures in tax haven jurisdictions.
Relationship with tax authorities
AkzoNobel seeks an open and constructive dialog with tax authorities on the basis of disclosure of relevant facts and circumstances. AkzoNobel aims to enhance clarity and upfront certainty around tax.
AkzoNobel is transparent about its approach to tax and tax position. Disclosures are made in accordance with the relevant domestic regulations, as well as applicable reporting requirements and standards such as IFRS.
In the countries where AkzoNobel is operating, the company is contributing to society in several ways. The company pays to suppliers, employees, capital providers and governments. AkzoNobel can only operate in countries if certain conditions are fulfilled. For example, educated people are needed to run and manage our operations, and a logistical infrastructure is needed to transport goods. By paying to governments, AkzoNobel contributes to the general funds out of which these conditions can be financed.
AkzoNobel business generates tax receipts for the governments in the countries in which the company operates. In addition to corporation taxes, AkzoNobel pays and collects numerous other taxes including employee taxes and sales taxes. AkzoNobel annually reports on (corporate) income taxes paid globally and per region. For key countries, the company reports on the income taxes paid per country as well as on VAT and wage taxes withheld and paid. More information can be found in the document link: AkzoNobel’s approach to tax