TAX POLICY
In administrative management and in drafting the Financial Statements and any other type of accounting documenta- tion, Moncler complies with the applicable laws and regula- tions, adopts generally accepted accounting practices and standards, and is inspired by the principle of transparency in relations with stakeholders, including the tax authorities. It faithfully represents performance and significant events ac- cording to criteria of clarity, truthfulness and fairness, in ac- cordance with internal procedures, as stated in the Group s Code of Ethics. In this context, the Board of Directors plays a central role in the leadership and management of the Com- pany and the Group according to the values of honesty and integrity and the principle of legality.
The Company pays close attention to the legislation s evolutions aimed at fighting tax avoidance and evasion at the national and international level. Moncler has a tax strategy that governs how the Company manages this subject.
The Group has adopted a Tax Policy to ensure its com- pliance over time with the tax rules of the countries where it operates and to guarantee the financial and reputational integrity of all Group companies. It contains the following principles for the uniform handling of tax matters throughout the Group: observe all the applicable laws, rules, regulations and di-
sclosure requirements; apply diligent professional care and judgment to reach
well-reasoned conclusions, ensuring all decisions are ta- ken at an appropriate level and supported with documen- tation that evidences the decision-making process;
achieve certainty on tax positions adopted; whereas tax law is unclear or subject to interpretations, perform a ro- bust risk assessment, supported by adequate advices to ensure that the Group tax position adopted will be, more likely than not, settled in the Group s favour;
develop and foster good working relationships with tax authorities, government bodies and other related third parties, undertake all dealings with them in a professio- nal, courteous and timely manner;
be compliant with anti-bribery legislation; constantly interact with industry bodies or associations,
governments, and other external bodies (e.g. OECD and the EU), where possible, and appropriate to shape futu- re tax legislation and practice in ways that balance the Group s interest (e.g. consistency, stability, competitive- ness) with those of the relevant authority or policy;
do not make use of secrecy jurisdictions, tax havens or law tax jurisdictions in order to obtain tax advantages or tax structures intended for tax avoidance;
comply with the Group Transfer Pricing Policy applicable world-wide on the basis of the principle of arm s length, or normal value, stated by OECD Guidelines.
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 optimization initiatives and monitoring the most re- levant topics. Alongside the Group Tax Department, the Tax Affairs units of individual countries, 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 strengthened its internal tax risk control sy- stem, known as the Tax Control Framework (TCF), to reflect the strategic importance of 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 companies have to adopt the TCF in accordance with the specific bu- siness 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 the timely detection, accurate measurement, and effective control of tax risk.
Moncler ensures transparency and integrity in its re- lationships with the tax authorities, in case of audits re- ferring either to Group companies or third parties. The Company constantly acts with a transparent, cooperative approach with all industry associations and institutions to support the development of effective tax systems in the different countries in which it operates, and is active in various working groups on taxation, such as the one orga- nized by Altagamma.
EXCERPT FROM THE COUNTRY BY COUNTRY REPORT 2019 (Million euros)
2019
Tax rate range
Countries included in the
range
Revenues from third parties6
Income before taxes7
Taxes paid8 Taxes accrued9 Employees (FTE)
EMEA x<10% - United Arab Emirates
- Hungary
8.04 0.38 0.02 0.04 17.26
10% 15% - United
Kingdom
- Poland
- Switzerland
- Kazakhstan
- Russia
- Ukraine
87.18 9.30 1.99 2.11 1,286.63
20% - Norway
- Turkey
19.32 1.80 0.70 0.63 43.60
x>=25% - Italy
- Belgium
- Germany
- France
- Austria
- Spain
- Netherlands
543.24 428.19 54.06 81.94 1,240.08
Total EMEA 659.55 439.74 56.79 84.73 2,592.36
Americas x>=25% - Brazil
- Canada
- Mexico
- United States
265.87 16.99 0.85 7.38 306.35
Total Americas 265.87 16.99 0.85 7.38 306.35
Asia 10% 15% - Taiwan
84.72 0.79 0.70 1.44 155.12
20% x>=25% - Australia
- Japan
- China
457.88 70.47 22.02 26.44 731.17
Total Asia 658.93 90.95 28.73 33.43 1,076.37
Total 1,584.35 547.68 86.37 125.54 3,975.08
6. Revenues from third parties, amounting to 1,584.35 million euros, differ from the amount shown in the Annual Report 2019, equal to
1,627.70 million euros, because in this table they include revenues contained in the local statutory financial statements of the individual
companies.
7. Income before taxes of 547.68 million euros differs from the amount shown in the Annual Report 2019, equal to 470.73 million
euros, because in this table it only includes the pre-tax income contained in the local statutory financial statements of the individual
companies.
8. Taxes paid differ from taxes accrued primarily because they consist of the balance of the previous year (2018) and only advance
payments for the current year (2019).
9. Taxes accrued refer only to current taxes accrued in 2019. In addition, the nominal tax rate is applied to pre-tax profits, which have
been adjusted on the basis of local tax laws.
199198 CONSOLIDATED NON FINANCIAL STATEMENT 2020APPENDIX