243 APPendIx242 APPendIx MONCLER GROUP 2023
ly accepted accounting practices and standards, and is inspired by the principle of transparency in relations with stakeholders, includ- ing the tax authorities. It faithfully represents management events according to criteria of clarity, truthfulness and fairness, in accor- dance with internal procedures, as stated in the Code of ethics. In this context, the Board of directors plays a central role in the lead- ership and management of the Company and the Group according to the values of honesty and integrity and the principle of legality.
Moncler pays close attention to the legislation s evolutions aimed at fighting tax avoidance and evasion at the national and in- ternational level. Furthermore, it has a tax strategy that governs how the Company manages this subject.
The Moncler brand has adopted a Tax Policy to ensure compliance with the tax rules of the countries in which it operates and to guar- antee the financial and reputational integrity of all the Group com- panies. In particular, the principles have been established to ensure the uniform management of tax matters for all Group companies:
complying with all the applicable laws, rules, regulations and disclosure requirements on tax matters in all the countries in which it operates
applying diligent professional care and judgment to reach well-reasoned conclusions, ensuring all decisions are taken at an appropriate level and supported with documentation that evidences the decision-making process
where tax law is unclear or subject to interpretation, perform- ing a robust risk assessment, supported by adequate advic- es to ensure that the Group tax position adopted would be, more likely than not, settled in Group s favour
developing and fostering good working relationships with tax authorities, government bodies and other related third parties
complying with anti-bribery legislation constantly interacting with industry bodies or associations,
governments, and other external bodies (e.g. OeCd and the eU), where possible, to shape future tax legislation and practice in ways that balance the Group s interest (e.g. consistency, sta- bility, competitiveness) with those of the relevant tax authority
not making use of tax havens, tax structures without com- mercial substance or low tax jurisdictions in order to obtain tax advantages, or tax structures intended for tax avoidance
complying with the Group Transfer Pricing Policy applicable world-wide on the basis of the principle of arm s length, or normal value, as stated by OeCd Guidelines.
The Tax Policy Principles were approved by the Moncler Board of directors.
In Moncler s organizational model, the Group Tax Department (GTd) is responsible, among other things, for developing the Group s tax strategy by identifying, analysing, and managing different optimi- sation initiatives and monitoring the most relevant topics. Alongside the Group Tax department, the Tax Affairs units of individual coun- tries, acting in accordance with the values and principles defined by the Parent Company, are in charge of compliance management and tax planning and tax monitoring activities at the local level.
Moncler has strengthened its tax risk internal control sys- tem, the Tax Control Framework (TCF), making it suitable for mon- itoring tax risk. The main objective of the Tax Control Framework is to provide Group companies with uniform, consistent guidance in adopting a proper and effective approach to tax risk management. Because they operate in different jurisdictions, the Group compa- nies have to adopt the TCF in accordance with the specific busi- ness context and the domestic laws of their countries of reference. In keeping with the principles and guidelines set forth in the tax strategy, Moncler aims to manage tax risk proactively and believes that adopting a TCF can assure its timely detection, accurate mea- surement, and effective control.
Moncler ensures transparency and integrity in its relation- ships with the tax authorities, in case of audits referring either to Group companies or third parties. The Company constantly acts with a transparent, cooperative approach with all industry associ- ations and institutions to support the development of effective tax systems in the different countries in which it operates, and is ac- tive in various working groups on taxation, such as the one orga- nized by Altagamma.
EXCERPT FROM COUNTRY BY COUNTRY REPORT 2022
MILLION EUROS
2022
Tax rate Countries Revenues Income Taxes Taxes Employees
range included from third before taxes18 paid19 accrued20 (FTE)
in the range parties17
eMeA x<10% - United Arab emirates 11.12 1.50 - 0.07 17
- Hungary
10%
17 Revenues from third parties of 2,611.16 million differ from the 2022 An- nual Financial Report of 2,602.98 million as all revenues earned by companies, including financial income and other revenues included in the item General and administrative expenses , have been taken into ac- count in this prospectus.
18 The item Profit before tax of 784.58 million differs from the 2022 Annual Financial Report of 747.33 million, as this table shows the aggregate of all the financial statements of the individual companies.
19 Taxes paid differ from taxes accrued primarily because they consist of the balance of the previous year (2021) and only advance payments for the current year (2022).
20 Taxes accrued refer only to current taxes accrued in 2022. In addition, the nominal tax rate is applied to pre-tax profits, which have been adjusted on the basis of local tax laws.
