SCHREDER - Sustainability Report 2023

Company Information

 We do not seek abusive tax outcomes that are contrary to the spirit and intent of the law Tax incentives and tax efficiency opportunities are only used when they reflect the economic substance of the concerned legal entities and are only implemented where there is, at least, a “more likely than not” level of confidence that our position taken will be upheld on audit by the tax authorities. Schréder does not take advantage of tax incentives, reliefs and exemptions for purposes that are knowingly contrary to the intent of the law, or to avoid tax presence in the jurisdictions in which it operates. It also does not purchase pre-engineered tax planning solutions or engage in artificial or aggressive tax planning that lacks economic substance.  Our transactions comply with the arm’s length principles and OECD standards Schréder follows the OECD guidelines and local transfer pricing regulations when entering into intercompany transactions to ensure that the transactions follow the arm’s length principles. For similar intercompany transactions involving Schréder’s entities, the Group intends to use a consistent intercompany pricing methodology considering both parties to the transaction. Relationship with internal stakeholders, tax authorities and governments  Our Group Tax Function acts as an equal business partner The Group Tax Function aims to work with the business as an equal partner, providing clear, timely and relevant business-focused advice on all aspects of tax. When Schréder contemplates business transactions that could entail significant tax consequences or business transactions of which the tax treatment is uncertain, the main tax implications

of these transactions are presented to the Group’s decision-making bodies for approval. It is understood that, where appropriate, the Group Tax function will be involved well in advance to ensure that the transactions to be implemented are analysed from a tax perspective and properly documented.  We strive to maintain an open and constructive relationship with tax authorities worldwide All Schréder entities are required to file tax returns and forms within the legal deadlines and to disclose relevant information to enable tax authorities to carry out their audits. In the event of an audit, Schréder’s tax team, together with all other relevant business units, will respond to questions and requests for information in a timely and comprehensive manner in order to facilitate an open and transparent dialogue with the tax authorities. When the tax authorities provide justified/legitimate recommendations on potential tax treatments and implications of a transaction or tax position, Schréder takes them into account to adjust its tax position to comply with these recommendations and to address their concerns. Such recommendations are taken into account not only for the tax periods under investigation by the tax authorities, but also to determine the Group’s future tax strategy. When dealing with significant tax and transfer pricing implications, Schréder may seek to enter into Advance Pricing Agreements (APAs) where possible, in order to obtain prior tax agreement from the relevant authorities. If the position of the tax authorities in their interpretation of the arm’s length principle leads to tax adjustments, Schréder may use all available

tax dispute resolution channels to avoid or reduce double taxation. In the event that the complexity of tax regulations and differing interpretations of certain tax rules lead to disagreements with tax authorities, Schréder will seek to resolve any differences of interpretation with tax authorities in an open, cooperative and professional manner. In exceptional cases, Schréder may decide to resolve tax disputes through formal proceedings.  We advocate positive tax changes to help businesses create value The Group Tax team monitors changes in tax legislation and government consultations/ debates on tax policy in key jurisdictions to stay informed and anticipate potential future impacts on the business. Where relevant, we discuss tax initiatives and provide input to the business, primarily through participation in industry trade bodies, professional tax working groups and roundtables. The main purpose is to share experiences and advocate for potential improvements to existing and future tax regulations to help businesses create value for the company, its customers and society. Due to its size, Schréder is not required to prepare the country-by-country report in accordance with the current OECD guidelines, the current Council Directive (EU) 2016/881 and the relevant national legislation.


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