Poste Italiane has developed its own tax risk management and control system, which, as part of the wider Internal Control and Risk Management System (SCIGR), meets the following requirements in line with legislation and best practices:
- the Tax Strategy in which the Group has defined its objectives and the approach adopted in managing the tax variable. The Tax Strategy is arranged as a set of principles and rules aimed at promoting dissemination of the values of honesty, fairness and compliance with tax regulations, thereby encouraging the development of collaborative and transparent conduct towards the tax authorities and third parties, in order to minimise any substantial impact in terms of either tax or reputational risk;
- adequate processes, procedures and tools for the detection, measurement and management of tax risks, as well as for monitoring the tax risk control system;
- a system of delegated powers, roles and responsibilities regarding the processes of detecting, measuring, managing and monitoring tax risk, defined within a specific Guideline, as well as detailed in the relative operating procedures and in the tax risk map (i.e. Tax Risk Assessment);
- adaptation to major changes affecting the Company, including changes in tax legislation;
- sending an annual report to the management bodies containing the results of the checks carried out and any action plans to be implemented to remedy the shortcomings that emerged from the monitoring. This report is also sent to the Revenue Agency for evaluation of the Tax Control Framework.
Poste Italiane coordinates with Group companies to ensure that operate in compliance with current tax legislation and in line with the Group risk management and control system.
Poste Italiane's tax revenue for the year 2023 was 2.7 billion euros. Poste Italiane operates in Italy and pays taxes in Italy.
FISCAL TRANSPARENCY POLICIES
In line with its sustainability strategy and with the values set out in the Group's Code of Ethics, the Poste Italiane Group has always managed taxation in full compliance with the principles of honesty, fairness and compliance with tax regulations, characterised by cooperative and transparent conduct towards tax authorities and third parties, in order to minimise any material impact in terms of tax or reputational risk. To this end, the Group has adopted a Tax Strategy within which the Company has defined its objectives:
- manage the tax variable by protecting the interests of all stakeholders, including the government, shareholders, employees and the community in which it operates, including at local level, being aware that tax revenue is one of the main sources of contribution to the economic and social development of the country;
- always operate in compliance with tax regulations with regard to both the letter of the rules and the underlying rationale, monitoring and overseeing regulatory changes, including through continuous dialogue with the relevant institutions at national and international level;
- carry out transactions in application of the arm's length principle and applying transfer pricing at arm's length;
- make decisions on tax matters in line with national and international best practices and with the guidelines dictated by sector bodies, as well as in line with its own strategic objectives and risk appetite;
- promote professional diligence in the management of tax-relevant activities and processes, and ensure that the related procedures are appropriate;
- ensure adequate technical training for all employees involved in the management of tax-related obligations and activities;
- establish complete and accurate information flows to management bodies and tax authorities;
- encourage the development of constructive, professional and transparent relations with the Tax Authorities, based on the concepts of integrity, collaboration and mutual trust.
TAX RISK ASSESSMENT
During the year 2023, the Tax Risk Assessment was updated, which entailed a review of certain of Poste Italiane's tax risks, also in consideration of the regulatory updates that have taken place, both in terms of existing risks and their assessment, as well as the updating of certain activities and the related control measures. In general, the review of the Tax Risk Assessment covered the following points:
- integration/modification of tax risks due to changes in tax legislation, the review of risks with a view to continuous improvement;
- update of the qualitative/quantitative assessment of tax risks, where appropriate, mainly following the outcomes of monitoring;
- update of the activities and related control measures identified to mitigate tax risks, where necessary, depending on the evolution of tax regulations, organisational and process changes that occurred during the period, alignment to the detected operations and/or any opportunities for improvement in the design of controls, detected during testing activities, or with a view to optimisation.
Also during 2023, the controls to guard against the risks envisaged within the framework of Poste Italiane's tax risk management and control system were monitored, in accordance with what was defined in the 2021-2023 Monitoring Plan and in line with the methodology adopted.
For further details regarding the Group's fiscal performance in 2023, please refer to the attached document on the Group's country-by-country fiscal reporting.
