Tax Policy | Carter Industrial Company

Tax Policy


1.    Introduction

At Carter Industrial Company, we aim to be a responsible corporate citizen and complying with all applicable tax laws and regulations in the countries where we operate. This Tax Policy outlines our commitment to tax-related matters and serves as a general framework for our approach. It is supplemented by detailed internal instructions provided to employees involved in tax-related activities.


2.    General Approach to Taxes

Our primary objective is to meet local tax compliance requirements, including the timely and accurate payment of taxes and filing of tax returns. We conduct our tax affairs in an honest and ethical manner, avoiding any actions that could harm our brand or reputation. While taxes are a necessary business expense, we aim to pay the right amount of taxes in the jurisdictions where we operate, while creating value for our shareholders. We consider the operational logic of our business locations and continually monitor the evolving tax landscape to adapt to changes. Through prudent and sustainable tax management, we seek to minimize tax risks and maintain a fair and competitive tax rate. We strive to comply with the spirit and letter of the laws in the countries where we operate and disclose our total tax costs in accordance with international accounting standards.


3.    Transfer Pricing

Transfer pricing refers to the pricing of cross-border transactions between related parties. We adhere to internationally accepted transfer pricing methods to ensure that such transactions are priced at arm's length compensation. The arm's length principle ensures that the pricing between related parties aligns with what would have been agreed upon between two unrelated enterprises in a similar situation. We follow the recommendations outlined in the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations and comply with local legislation. We maintain transfer pricing documentation where required by law and review it annually to ensure accuracy.


4.    Tax Planning

In all tax-related decisions, we prioritize the commercial needs of our business. When multiple options exist to achieve the same commercial result, we consider the tax implications alongside other relevant factors. Our decisions are guided by our responsibility as a good corporate citizen and our reputation. We do not engage in arrangements with or establish operations in jurisdictions solely for tax reasons if they are considered tax havens.


5.    Communication with Tax Authorities

We strive to maintain professional and transparent relationships with tax authorities in all the countries where we operate. We are committed to honesty, openness, and transparency during tax audits and in all other interactions with local tax administrations. We aim to avoid tax disputes and seek to resolve differences in opinions through constructive dialogue whenever possible.


6.    External Tax Advice

When external tax advice is required, we primarily seek assistance from reputable audit or consultancy firms with a strong track record. We rely on business-oriented tax advice that adds value to our organization and aligns with our policies and relevant rules and regulations in each jurisdiction.


June 30, 2023

Carter Industrial Company

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