Being one of Europe’s leading energy companies, innogy¹ is aware of its role within society and its responsibility towards customers² and business partners as well as shareholders and employees. On that basis, we have established clear principles providing the framework for our activities both as a company and within society – also with regards to our commitments in tax matters.
We understand tax compliance not only as a legal obligation – To us, tax compliance is an integral part of corporate governance and a contribution in respect of our social responsibility.
innogy SE Global Tax Policy
Being a company focused on sustainability, innogy always makes sure to act in accordance with the law and to achieve its business objectives exclusively by legally and ethically correct means. The responsible use of natural resources, fair working conditions, preventing corruption and transparent business practices are as important to innogy as meeting requirements under tax law.
innogy is the answer to the big trends which are fundamentally changing the energy sector worldwide, but especially in Europe and Germany: Decarbonisation, decentralisation and digitalisation. These trends are reflected in our three business segments of Grids, Retail and Renewable Energies. innogy intends to be among the three leading suppliers and most profitable companies in all relevant markets in the energy world of the future. Moreover, innogy intends to be the energy partner of choice for customers, municipalities, cooperation companies and financial partners.
innogy´s tax strategy benefits these objectives – it is an indispensable part of our corporate strategy. To us, paying statutory taxes does not only constitute compliance with the law, but we regard our tax payments as a fair contribution towards funding and developing the community in all the countries and municipalities in which we are performing successfully as a company. This is why we consider maximum transparency of our tax-related activities and their disclosure as required by law to be part of our social responsibility. We are always aiming to maintain an open and trusting dialogue with the fiscal authorities.
Our guiding principles
Our tax experts ensure that innogy adheres to the tax-related regulations and procedures as part of its business activities – in both Germany and the other countries in which we operate. To this end, our tax experts always keep up to date when it comes to tax legislation and relevant case law. Wherever our own staff cannot ensure this, we retain qualified consultants by way of careful selection and leadership to make sure that tax-law regulations and procedures are adhered to.
We reject any form of aggressively or artificially designed tax avoidance. innogy’s tax planning invariably meets the tax-law obligations resulting from our business activities. In this context, we do not exclusively look at the wording of the tax-law requirements, but also take account of the underlying intention of the legislator. Tax subsidies and other tax-reducing regulations are used within the bounds of what is politically intended and permitted by law.
innogy’s business activities give rise to wide-ranging obligations under tax law. To ensure proper compliance with these obligations we have adopted directives and other regulations for all the affected units within and outside the tax function so as to establish rules for functions, processes and responsibilities with a view to meeting the obligations under tax law. Additionally in Germany we have introduced tax compliance management systems according to IDW audit standard PS 980 in order to guarantee a comprehensive adherence of tax compliance.
Cross-border business relations between innogy companies are based on arm’s length principles (transfer prices) in compliance with the applicable national and international standards. We pay our taxes in the countries where we do business and earn profits. In this context, we expressly support the efforts of the international community to keep harmful tax competition and profit transfers across borders at bay.
This Global Tax Policy is in line with innogy’s Code of Conduct for adherence to the compliance principles . While the Executive Board of innogy SE is responsible for the Global Tax Policy, it is implemented by the Global Head of Tax. The Global Tax Policy applies uniformly across the whole of innogy, foreign Group companies may take account of different national requirements.
Essen, January 2019
¹ In the following, „innogy“ designates innogy SE including all its directly or indirectly affiliated domestic and foreign companies (innogy Group).
² Gender-neutral terms always refer to both male and female individuals.