The BW LPG Responsible Tax Policy commits BW LPG to responsible and transparent tax behavior.
- Tax is a core part of corporate responsibility and governance, which is overseen by the Board of Directors (the “Board”) and the delegated sub-committee. BW LPG actively manages tax matters in order to deliver our business strategy and to create sustainable shareholder value.
- BW LPG complies with relevant domestic and international tax laws, regulations, treaties and other standards such as the OECD guidelines, and pay the appropriate amount of tax in the countries where BW LPG create value.
- BW LPG conducts all intra-group transactions at prices in accordance with the arm’s length principle.
- BW LPG seeks to develop cooperative relationships with tax authorities and relevant government bodies, based on mutual respect, transparency and trust
In order to achieve this, BW LPG shall:
Tax Risk Management
- Have clear procedures in relation to tax risk management and carry out risk assessments before entering into any tax planning on significant transactions.
- Base our tax planning on reasonable interpretations of the applicable law and also be aligned with the substance of the economic and commercial activity of our business.
Accountability & Governance
- Employ appropriately qualified and trained tax professionals with the right levels of expertise and experience.
- Report at least annually to the Board (or delegated sub-committee) on tax risks.
- Prepare and file all tax returns required, providing complete, accurate and timely disclosures to all relevant tax authorities.
- Apply the arm’s length principle, pricing intra-group transactions with best practice guidelines issued by the OECD and apply this consistently across BW LPG.
- Provide an overview of our group structure and a list of all entities, ownership information, country of domicile, and a brief explanation of the business activities.
- Provide annual information on our global effective tax rate (Consolidated Annual Accounts – Taxation) and cash tax paid per year (Consolidated Statement of Cash Flows).
Relationship with Tax Authorities
- Follow established procedures and channels for all dealings with tax authorities and government bodies in a professional, courteous and timely manner.
- Establish and maintain an open and constructive dialogue with tax authorities and other government bodies by responding to relevant tax authority enquiries in a straightforward and timely manner to assist in the evaluation of tax liability.
- Not bribe or otherwise induce tax officials, government officials or ministers with the aim of obtaining more beneficial outcomes with respect to tax matters.
- Use tax incentives where they are aligned with our business and operational objectives and where they require economic substance.