The Company develops, as required, appropriate procedures and operates in accordance with relevant processes that ensure the proper fulfilment of obligations arising from tax law provisions. The procedures and processes in place within the Company take into account the nature of the Company, its organisational structure and the specific characteristics of the industry in which the Company operates. The Company is part of the international Lesaffre Group and additionally applies the policies and procedures in force within the Group.

In its operations, the Company applies principles governing tax matters based on applicable tax regulations and generally accepted practices. These principles are reflected in the documentation developed by the Company to support specific tax areas.

The Company’s method of tax settlement is straightforward and uncomplicated. The Company’s core activities comprise manufacturing operations involving the production of baker’s yeast and improvers for the confectionery and food service industries. The majority of the Company’s revenue is generated from the sale of products, goods and materials, while most tax-deductible costs arise from operating activities, in particular costs related to the consumption of materials and energy, as well as social security contributions. The Company’s procedures and processes take into account the nature of the Company, its organisational structure and the specific nature of the industry in which the Company operates.

The Company’s tax strategy

The procedures in place and in operation at Lesaffre Polska are part of a general framework for ensuring high standards and due diligence in the conduct of business. A key element from the perspective of tax matters within the Company is the tax strategy developed by the Company.

The strategy applies to all taxes and charges to which the Company is subject.

Procedures Applied by the Company

The Company has implemented additional procedures aimed at ensuring the proper fulfilment of its tax obligations. The principles governing these procedures are set out in internal Company documents, such as the internal procedure on preventing non-compliance with the obligation to report tax schemes, applicable at Lesaffre Polska S.A.
Furthermore, the Company applies guidelines reflecting recognised good practice to ensure the proper fulfilment of its tax obligations, including procedures for the verification of transactions and counterparties from a withholding tax perspective.
The Company applies internal procurement control principles approved at the level of the Lesaffre Group, including the “Procurement Policy” and the “General Ordering and Purchasing Procedure”, which define the detailed process for placing orders and purchasing materials. As part of these processes, employees of Lesaffre Polska conduct detailed due diligence on the Company’s counterparties, including the following:

• verification of counterparties against the VAT taxpayers’ register;
• verification of bank account numbers published by the National Revenue Administration on the so-called “whitelist”.

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 the timely payment of taxes. The Company makes every effort to ensure that the information provided accurately reflects the factual situation and is complete, up to date and clear.

Tax Risk Management

The Company operates a risk management system encompassing financial matters, including tax-related risks. The Company undertakes actions aimed at identifying tax risks through appropriate internal controls and monitoring, followed by their elimination or mitigation. The assessment of the level of risk is carried out on the basis of the internal expertise of Lesaffre Polska employees, with the support of external tax advisers.

Monitoring Changes in Tax Law

The Company actively monitors tax regulations in terms of planned and enacted legislative changes, as well as available and permissible tax reliefs and exemptions, with a view to their application in ongoing operations.

Organisation of Training

In response to ongoing changes in tax law, the Company delivers appropriate substantive training to its employees, as necessary. Company employees also participate in mandatory substantive training organised by the Lesaffre Group.

Use of Advisory and Audit Services

The Company uses the support of advisory and audit firms to verify compliance of tax settlements with applicable regulations. Selected elements of the Company’s tax settlements are consulted with external tax advisers.

Document Archiving

The Company has an organised document archiving process, including documents related to tax settlements, both in electronic and paper form.