Pirelli believes that a coherent and responsible approach to Tax Governance is an essential element of its sustainable business development.
Pirelli’s Tax Governance framework benefits from a strong and independent internal control system and an advanced risk management system that are governed by the Board Committee for Audit, Risks, Sustainability and Corporate Governance, and the Board of Directors.
Within this context, Pirelli bases its Tax Governance on the following principles:
Pirelli is committed to transparency in its Tax Governance approach and its tax position. Public statements and disclosures on its tax situation and tax payments are made in accordance with the relevant domestic regulations, as well as the applicable reporting requirements according to international accounting standards and other international rules (such as IFRS, OECD Guidelines).
We refrain from the utilization of any offshore secrecy jurisdictions or tax havens for tax avoidance purposes. The Group’s tax planning is consistent with this responsible approach.
We aim to pay an appropriate amount of tax according to where value is created in the ordinary course of business activity. Any transfer pricing is always calculated using the ‘arm’s length’ principle.
The Group is committed at all times to pay taxes in accordance with applicable tax laws and regulations of the countries where it operates, with the aim to comply with both the letter and the spirit of said laws and regulations.
Compliance and Corporate tax payment responsibilities and controls are subject to supervision by the Group’s external as well as internal auditors.
Relationship with Tax Authorities
Pirelli seeks to maintain a strong and mutually respectful relationship with local and international Tax Authorities, based on transparency and trust in any Country where it operates.