BAM Tax policy statement
Tax is a relevant subject for BAM and its stakeholders. Tax payments to governments can contribute to the development of countries. On the other hand, optimisation of taxes is in the interest of the company and its financial position. Therefore, BAM strives to come to a responsible approach to tax and supports a responsible approach to tax as an integral part of its corporate social responsibility agenda.
For BAM, a responsible approach to tax is an approach in which the aim is to comply with both the letter and spirit of tax laws, an appropriate amount of tax is paid according to where value is created within the normal course of business and transparency is pursued about method and outcome. In the context of a responsible approach to tax, BAM has adopted tax principles that are leading in the way tax affairs are managed.
Tax follows the business, meaning that transactions must have a commercial and/or business rationale. BAM’s approach to tax supports the Group’s overall business strategy and objectives and is in line with BAM’s Code of Conduct. BAM’s tax policy and the BAM tax principles were reviewed and approved by the Executive Board and the Audit Committee.
To ensure compliance with local and international tax laws and regulations, BAM adopts tax policies for its businesses and projects. BAM ’s tax department supports awareness for – and compliance to these tax policies.
Tax risk management procedures are designed to complete a comprehensive risk assessment before entering into tax optimization initiatives. Periodic review of processes are performed to ensure controls remain effective and no material departures from acceptable practice have taken place.
BAM supports the OECD initiatives to promote tax transparency and reform of international tax systems to come to fair tax systems. In its relationship with tax authorities, BAM seeks to develop transparent and constructive relationships. In the Netherlands, BAM concluded a so-called covenant horizontal monitoring agreement with the Dutch tax authorities. BAM strives to implement similar engagements in other countries.
In accordance with BAM’s responsible approach to tax, transactions between companies within the Group are conducted on an arm’s length basis. Transfer pricing between operating companies is based on fair market terms and the commercial nature of the transactions. In accordance with domestic and international rules, income and profits are allocated to countries and entities in which value is created.
BAM Tax Principles
BAM acts in accordance with applicable tax laws and is guided by relevant international standards (such as OECD guidelines). BAM strives to comply with the letter and the spirit of the laws.
BAM is transparent about its approach to tax. BAM communicates regularly and transparent about its tax policy and total tax payments.
BAM reports income in the countries where the value is created in accordance with internationally accepted standards, applying the arm’s length principle.
Relationship with tax authorities
BAM seeks to develop and maintain open, constructive and mutually respectful relations with tax authorities based on transparency and trust. BAM only seeks rulings from tax authorities to confirm the applicable tax treatment based on the full disclosure of the facts.
BAM does not use contrived or abnormal tax structures that are intended for tax avoidance. BAM does not use secrecy jurisdictions or so-called tax havens.