By pursuing a transparent and responsible tax strategy
GrandVision pursues a transparent and responsible tax strategy across all countries in which it is present. Additionally, it aligns the long-term interests of all stakeholders, including shareholders, governments and communities. We do that by embedding tax implications in business processes where and when they originate. Even the smallest shifts in the way the business operates, whether it be in new products, services, digitalization or use of technology, can have implications on our national and international tax positions. Our tax strategy is designed to navigate these complexities and ensure we pay the right amount of tax and comply with all legislations.
Our tax strategy is created with input from a dialogue with our wide variety of stakeholders. For instance, how we communicate about our tax affairs is further shaped by community desires for transparency. We are progressing on the execution of our tax strategy through the development of the GV Tax network and by further tax enhancing company systems such as Enterprise Resource Planning (ERP) and other technology. GrandVision’s tax strategy is supported by a Tax Control Framework that allows us to effectively manage and control our tax positions. We report on our tax risks and about the execution of the tax strategy to the Audit Committee and the Supervisory Board.
The principles of our tax strategy are as follows:
- Be compliant at all times
- Pay the right amount of taxes across the value chain in the jurisdictions in which we are present and where value is created
- Reflect tax implications from business activity accurately in company records in real-time at an entity level
GrandVision is committed to taking full responsibility with regards to its tax matters. External advisors are engaged on an as-needed basis, always considering independence from internal and external auditors.
Tax Control Framework
Compliance with tax regulations is ensured through GrandVision’s Tax Control Framework. The Tax Control Framework enables us to effectively monitor, control and manage group-wide tax positions. It creates awareness of possible tax exposures and enables us to report our tax positions and comply with country-by-country obligations.
GrandVision strives to maintain strong working relations with tax authorities. In countries where it is possible, this is done through collaborative working (horizontal monitoring) arrangements. For example, in 2017 GrandVision completed a compliance review program that resulted in the signing of a Covenant with the Dutch tax authorities.
Furthermore, our Tax Control Framework enables the GrandVision global tax network to monitor and manage KPIs such the timely and correct filing of VAT-, and Transfer Pricing obligations, country-by-country reporting regulations, the effective tax rate (ETR) and our position in tax transparency benchmarks.
The Tax Control Framework is also covered by the work of the independent Internal Audit function, which provides assurance and validation of the overall internal control frameworks.
Our Contribution to Socio-Economic Development
The taxes paid by GrandVision are a significant part of our contribution to enhancing socio-economic development. In 2017, GrandVision reported €101 million in income tax. More information available in our 2017 CSR Report.
Our four tax management pillars