Tax Strategy – CFE Polska

General information about CFE Polska sp. z o.o.

CFE Polska sp. z o.o. (hereinafter: CFE, the Company) is one of the companies belonging to the international CFE Group. The primary area of the Group’s operation is the activity in the public-private partnership licence, construction, real property, system and marine engineering markets. CFE has been active on the Polish construction market for over twenty years and has extensive experience in the implementation of industrial, residential, commercial, service and hotel projects, carried out using the state-of-the-art technologies and highest quality materials. The primary business objective of the Company is professional and reliable execution of construction investment projects, bearing in mind the interests of clients and respect for its subcontractors and business partners. The Company’s key values include respect, professionalism, flexibility and teamwork.

Information on the implemented tax strategy

On 1 January 2021, the provisions amending the Corporate Income Tax Act dated 15 February 1992 (hereinafter: the CIT Act) introducing the obligation to publish information on the implemented tax strategy came into force.

Due to the fulfilment of the income criterion in the previous fiscal year, i.e. the fiscal year running from 1 January to 31 December 2020, (hereinafter: fiscal year 2020), the Company fulfils its obligation by publishing this information on the implemented tax strategy for fiscal year 2020. The scope of information indicated by the Company on the implemented tax strategy is consistent with the catalogue of information laid down in Article 27c(2) of the CIT Act, taking into account the nature, type and size of the Company’s business.

Notwithstanding the need to comply with the obligation imposed by the CIT Act, CFE points out that the Company considers the publication of information on its tax strategy as an expression of its transparent approach to the implementation of its tax obligations both towards tax authorities, business partners and investors.

CFE’s primary consideration, with respect to tax matters, is the proper discharge of the applicable tax obligations, including, in particular, the payment of taxes in the amount and within the time limits required by the provisions of tax law. The Company does not and will not participate in artificial constructions created to circumvent the provisions of tax law. All of the Company’s ventures are economically justified based on business, not tax, considerations.

The Company makes every effort to effectively perform the tax obligations imposed on it, among others, by adapting its organisational structure to the current objectives and tasks performed by the Company, as well as by properly selecting employees involved in the Company’s tax settlements. Employees involved in the performance of tax duties have the appropriate knowledge, skills, and experience to effectively and efficiently perform duties assigned to them. The Company also invests in expanding the knowledge of its employees in the area of tax law.

Within the tax function management model adopted by the Company, the Company, in order to properly perform more complex tax obligations, entrusts part of the tasks to a professional external entity whose experience and personnel enable proper and reliable performance of these services.

Procedures and processes from the area of managing tax law obligations

The Company observes a number of principles regulating various areas related to its business activity, including those related to proper fulfilment of obligations provided for in tax law.

Some of them, due to the scale of the Company’s business ventures and related tax settlements (as well as in order to maintain the Company’s uniform approach in the long run), have been written down in the form of formal procedures, while others exist on the basis of practices developed over the years.

In view of the above, the Company indicates that a number of matters related to managing the performance of obligations under the tax law and ensuring their proper implementation have been described in the procedures implemented by the Company[A1] , in particular in the general procedures related to corporate income tax and value added tax settlements, as well as specific procedures such as VAT due diligence, tax risk monitoring, entering into transactions with affiliates and entities from tax havens, and fulfilment of transfer pricing obligations.

In addition, the Company indicates that it has a Manual of Internal Procedures, which consists of the following policies:

Safety, quality and environmental policy
Integrity policy
Business decision making policy
Project management and monitoring policy
Policy on participation in temporary companies and on company capital
Purchasing and subcontracting policy
Investment policy
Accounting and financial management policy
Human resources management policy
Policy on legal, tax and insurance services
Internal and external communication policy
Information security policy

Consequently, the actions taken by the Company in the performance of its tax function are by no means accidental, and their implementation results directly from written procedures or from practices of conduct developed and refined over the years.

Information on voluntary forms of cooperation applied by the taxpayer with the National Revenue Administration (Krajowa Administracja Skarbowa, KAS)

The Company indicates that it has not entered into a cooperation agreement, which is the only form of formalized voluntary cooperation between the taxpayer and the National Revenue Administration authorities provided for in Polish tax law.

However, regardless of the above, the Company is open and transparent in its contacts with the tax authorities and one of the Company’s objectives is to perform its tax obligations in a reliable, correct and timely manner, having in mind also their social function.

Information on the performance of tax obligations by the taxpayer on the territory of the Republic of Poland, including information about the number of items of information on tax schemes submitted to the Head of the National Revenue Administration

CFE in fiscal year 2020 fulfilled all of its obligations under the provisions of tax law applicable in the Republic of Poland in a timely manner.

The Company indicates that in 2020 it did not submit to the Head of the National Revenue Administration the information on tax schemes referred to in Article 86a(1)(10) of the Tax Ordinance.

Transactions with affiliated entities

The Company did not conclude any transactions with affiliated entities within the meaning of Article 11a(1)(4) of the CIT Act, whose value exceeded 5% of the balance sheet total of assets within the meaning of the accounting regulations, determined on the basis of the last approved financial statements, including entities not being tax residents of the Republic of Poland.

Restructuring activities

In fiscal year 2020, the Company did not undertake any restructuring activities that could affect the amount of tax liabilities of the Company or its affiliated entities within the meaning of Article 11(1)(4) of the CIT Act.

As at the date of the publication of this information, the Company does not expect to undertake any restructuring activities referred to above in the foreseeable future.

Information on submitted applications for issuing a general ruling, individual rulings, binding rate information and binding excise information

In 2020, the Company did not apply for: a general tax ruling, individual tax law ruling, binding rate information or binding excise information.

Information on tax settlements in territories or countries applying harmful tax competition

The Company reports that in fiscal year 2020 it did not carry out tax settlements in territories or countries applying harmful tax competition.