Global Tax Policy
We believe that taxes are part of a well-ordered society. To that end, our Global Tax Policy outlines and describes the governing principles for tax management at DSV.
DSV Panalpina has operational companies in more than 90 countries, all of which are governed by national and international tax legislation. This document outlines the DSV Group’s Global Tax Policy and describes our governing principles for tax management.
The overall aim is to be tax compliant and live up to our corporate social responsibility while ensuring a positive return on investment for our shareholders.
We support local communities all over the world
Through our global tax payments, DSV Panalpina contributes to a variety of state, county and council projects, which support local communities all over the world.
When it comes to tax, we have made a choice to act in what we consider to be a fair and responsible way: we want to comply with all tax legislation and we do not engage in aggressive tax planning to avoid tax payment. We believe in contributing to the societies and local communities in which we operate.
We help to achieve a better and more sustainable future
DSV Panalpina's tax policy directly contributes to achieving UN’s Sustainable Development Goals #16 and #17. In addition, DSV Panalpina's tax payments indirectly contribute to achieving most of the 17 Sustainable Development Goals
The distribution of funds from DSV Panalpina’s tax payments is of course entirely managed by local governing bodies, which means that our contribution to SDG targets in respect of taxes is indirect and mostly relevant whenever massive investment (funded by taxes) is required.
Policy
The general tax policy of the DSV Panalpina Group is to comply with tax legislation and to meet legal requirements, including timely filing of tax returns and tax payments. At the same time, DSV Panalpina has an obligation to ensure a return for our shareholders by managing tax to secure a competitive effective tax rate in accordance with tax legislation.
DSV Panalpina pays taxes (direct and indirect) in the countries in which we operate and where profits are generated. DSV’s approach to tax planning is to support the local and global business activities by ensuring that DSV is not subject to double taxation while following both national and international tax legislation.
We do not engage in aggressive tax planning
DSV Panalpina’s structure and set-up is driven by commercial consideration and business strategy and not to obtain tax incentives.
We do not set up artificial structures in tax havens to avoid taxes on activities or engage in tax planning which moves revenue from high- to low-tax countries to minimise tax payments. We deconstruct any inherited offshore companies.
In connection with mergers and acquisitions, DSV Panalpina sometimes inherits non-operational offshore companies and, whenever this is the case, it is a priority to eliminate them as soon as possible. During this very time-consuming process, these companies must not be used for tax optimisation.
We maintain an open dialogue with tax authorities
DSV Panalpina maintains an open and transparent dialogue and a good working relationship with tax authorities, both proactively and reactively, to minimise potential disputes and double taxation. In Denmark, DSV Panalpina is part of a Tax Governance concept with the Danish Tax Authorities. This cooperation builds on equal dialogue with a mutual comprehension of equality and openness. This aims to create tax transparency and secure a correct and up-front alignment of tax positions. DSV Panalpina seeks to and has entered into similar agreements in other countries, when possible.
DSV Panalpina makes use of external tax advisors to ensure compliance of transactions as well as tax returns.
We carefully monitor and assess risks
DSV Panalpina’s approach to risk management in relation to tax affairs is the same as the overall approach for the DSV Group: we carefully monitor and analyse any risks to achieve the greatest possible level of transparency and ensure that the right decisions are made in time to protect the business from any significant financial impact.
Roles and responsibility
The Board of Directors has the overall responsibility for this Policy and the framework for compliance with tax legislation.
Day-to-day responsibility lies with the Group CFO, supported by the Group Tax Department.
Group Tax manages the DSV tax framework and issues guidelines to ensure that tax legislation is observed and complied with throughout the DSV Group.
At subsidiary level, local management is responsible for ensuring compliance with tax legislation as well as implementing DSV’s global tax governance principles as outlined above. Group Tax and local management monitor updates and changes to tax legislation and practices to assess the impact on the DSV Group.
DSV Panalpina’s Global Tax Policy is reviewed on an annual basis by the Board of Directors. Furthermore, operational tax matters, including how tax risks are monitored and managed, is reported to the Audit Committee on a periodic basis.
Approved by the DSV Panalpina Board of Directors, 9 February 2021.
Any questions?
Contact Martin Andreasen, Executive Vice President, Group Compliance
