The Tax Strategy (Blue Circle)

Tax Compliance

Commit to applying the tax rules provided for in treaties, EU regulations and laws of the jurisdictions in which the Group operates, ensuring compliance with both the letter and spirit of the tax laws. Should the legislation give rise to significant tax uncertainties, Mundys shall adopt a reasonable interpretation to be disclosed in advance to the competent Tax Authority.

Tax Risk Management

Adopt a Tax Control Framework, for tax risks management, continuously updated and in line with OECD recommendations and the criteria adopted by the Italian Tax Authority, to monitor the risk of incurring the violation of tax regulations or the abuse of principles and purpose of the tax system. Extend gradually the Tax Control Framework to the most relevant entities of the Group.

Tax Fairness

Ensure to pay the amount of taxes due according to the law and at the right time, without necessarily choosing to pay the highest amount. Therefore, Mundys is committed:

• towards the affected communities in which the Group operates to pay taxes as significant source of government revenue to their sustainable developments;
• towards its stakeholders, not to pay more taxes than is due under the law, ensuring in any event that it takes advantages of any legitimate tax savings and permitted tax benefits.

Aggressive Tax Planning

Adopt an approach to taxation that excludes the use of artificial constructions and the localization of profits in tax havens with the sole purpose of obtaining undue tax advantages in contrast with the purposes or the spirit of the provisions or of the relevant tax system. Monitor tax compliance with the key principles established in the Tax Strategy. Declare and remit taxes in the jurisdictions in which the Group has economic substance and carries out its effective economic activity. 

Arm's lenght principle

Apply the arm's length principle for setting intercompany transactions in accordance with the OECD guidelines (Model Tax Convention and Transfer Pricing Guidelines).

Tax Authority Engagement

Ensure transparency and accuracy in relations with Tax Authorities, promoting adherence to cooperative compliance regimes for Group companies, that integrate the requirements set by the relevant domestic regulations and adhering to the provisions on the transfer pricing documentation.

Tax Reporting and Sustainability

Considering that tax matters fall under sustainability impacts, risks, and opportunities, present an annual publicly available Tax Transparency Report that provides investors with information to evaluate the adequacy of the established Tax Strategy, tax risk management processes implemented and the tax contribution to the jurisdictions where the Group operates (both in terms of taxes paid - Taxes Borne - and in terms of taxes collected - Taxes Collected).

Whistleblowing

Fully implement a global whistleblowing procedure, which provides anonymous channels for reporting any unlawful or justifiably suspicious conduct, including in tax matters, as well as for communicating any tax findings. Set up a special committee for the analysis and management of whistleblowing reports, with protections for the whistleblower and compliance with national and EU regulations.

Soft Controls

Encourage tax compliance culture and awareness of the value of compliance in the Group. There must be no management incentive schemes linked to undue reductions in the tax burden. 

The Tax Strategy (Green Circle)

Tax Fairness

Ensure the payment of taxes due, within the legally prescribed deadlines, observing the spirit as well as the letter of the law and ensuring that, at the same time, the Group enjoys legitimate tax benefits. 

Responsible Tax Governance

An approach to taxation respectful of different stakeholders engaged, and that guarantees the highest level of accountability and disclosure on the adequacy of tax strategy and risk processes adopted.

Tone at the top

The Board of Directors defines Mundys Group’s tax strategy and oversees its application, as well as the effectiveness of the Tax Control Framework safeguards.

Tax Whistleblowing

The whistleblower protection procedure also applies to conduct that may involve breaches of tax legislation. 

Tax Authority Engagement

The Group maintains a transparent relationship with the Tax Authority, including through cooperative compliance regime.

Intercompany Transactions

Mundys applies the arm's length principle in determining the terms and conditions of intercompany transactions, in line with internationally recognized standards.