Metsä Group is responsible to its owners to manage the costs of its business effectively, including tax cost arising from the operations. At the same time Metsä Group acknowledges the importance of taxes as a part of corporate social and economic responsibility in its operating countries. Metsä Group manages its tax costs by active tax risk management and diligent tax compliance. Metsä Group does not manage its tax cost through artificial arrangements. Metsä Group voluntarily publishes information related to taxes and tax like payments borne by Group companies in order to increase transparency related to taxes.
According to Metsä Group’s Tax Policy tax issues related to our operations are always managed according to applicable laws and regulations. Metsä Group manages its tax costs by active tax risk management and diligent tax compliance. Metsä Group does not manage its tax cost through structures or schemes that are not based on business reasons or real substance.
Metsä Group follows arm’s length principle when setting conditions for the Group internal transactions. Allocation of taxable income is based on the value-add generated in each Group company. Metsä Group’s business models and legal structures are always be based on business reasons and real substance. Metsä Group locates operations into low-tax countries only if there are operational reasons for such location.
Metsä Group is responsible to generate added value for its owners. If Metsä Group has a possibility to choose within applicable laws an alternative for a transaction or structure which causes lower tax cost, it retains freedom to do so. If Metsä Group is being offered e.g. investment related tax incentives in its operating countries, such that are in line with its operative goals and real substance, Metsä Group retains freedom to use them.
Metsä Group cooperates openly and actively with the tax authorities in its different operating countries. In Finland Metsä Group participates in Enhanced Cooperation with the Finnish Tax Administration.
Metsä Group reports its tax cost accurately as a part of its financial reporting. Metsä Group also voluntarily publishes its tax footprint containing taxes and tax like payments borne by the Group companies.
Group tax position, including taxpaying position, tax audits, tax risks and their mitigation and other material tax related issues, is handled regularly in Group Executive Management Team and Metsäliitto Cooperative Board of Director’s Audit committee.