The Company develops appropriate procedures as needed and operates according to relevant processes that condition the proper performance of obligations arising from tax law regulations. The procedures and processes in place at the Company take into account the nature of the Company, its organizational structure and the specifics of the industry in which the Company operates. The Company is part of the international Lesaffre Group and also applies the policies and procedures in force within the Group.

The Company applies the principles of conduct in tax matters based on the applicable tax law regulations and generally accepted practices. These principles are reflected in the documentation developed by the Company to support specific tax areas.

The way settlements are made in the Company is simple and uncomplicated. The main scope of activities undertaken by the Company includes production activities in the field of baking yeast and improvers for the confectionery and catering industry. Most of the generated revenue comes from the sale of products, goods and materials, while most of the generated costs of obtaining revenue result from operating activities – these are the costs of consumption of materials and energy as well as social security.

The Company’s tax strategy

The existing and functioning procedures in Lesaffre Polska fit into the general framework of ensuring high standards and due diligence in conducting business. The key issue from the perspective of the functioning of tax matters in the Company is the Tax Strategy developed by it.

The strategy applies to all taxes and fees that concern the Company.

The strategy applies to all taxes and fees that concern the Company.

The Company also has additional procedures in place to ensure the proper performance of the Company’s tax obligations, the principles of which are described in the Company’s documents such as the internal procedure for counteracting failure to provide information on tax schemes applicable in Lesaffre Polska S.A. Furthermore, the Company has guidelines covering good practices to ensure proper fulfillment of tax obligations (tax processes), such as the procedure for verifying transactions and counterparties from the perspective of withholding tax. The Company has principles in the area of internal control for purchases approved at the Lesaffre Group level, including the “Purchasing Policy” document and the “General Order and Purchase Procedure”, which define the detailed process of placing orders and purchasing materials. As part of these processes, Lesaffre Polska employees conduct detailed verification of the Company’s counterparties, including:

• verification of counterparties in terms of the VAT payer register;
• verification of bank account numbers made available by the National Tax Administration on the so-called “white list”.

Tax reporting and settlements

The company focuses on reliable reporting and compliance with regulations, including the timely submission of tax returns, forms, and information, as well as meeting tax payment deadlines. The company makes every effort to ensure that the information provided accurately reflects the actual state of affairs and is complete, up-to-date, and understandable.

Tax risk management

The company also has a risk management system that covers financial issues, including tax matters. The company takes steps to identify tax risks through appropriate internal controls and monitoring, and then eliminates or mitigates them. Risk levels are assessed based on the internal knowledge of Lesaffre Polska employees, with the support of external tax advisors.

Monitoring changes in tax law

The Company actively monitors tax law regulations in terms of planned and implemented changes in the law, as well as available and permissible tax reliefs and exemptions in order to use them in its current operations.

Organization of trainings

Responding to current changes in tax law, the Company conducts substantive training for its employees as needed. The Company’s employees also participate in mandatory substantive training organized by the Lesaffre Group.

Use of advisory and audit services

The Company uses the support of consulting and audit firms to verify the compliance of tax settlements with regulations. Selected elements of tax settlements indicated by the Company are consulted with external tax advisors.

Document archiving

The Company has an organized process of archiving documents, including those related to the tax settlements made, both in electronic and written form.