현대제철 통합보고서
Governance
Tax Strategy3.4.2
Companies with international operations are required to comply with the tax laws of the relevant countries and with the OECD transfer pricing guidelines. Also, the issue of tax avoidance by multinational corporations has prompted rising calls from society for companies to honor their tax obligations transparently. Accordingly, Hyundai Steel’s internal regulations stipulate the maintenance of a tax-related reporting system and chain of command. This is because tax strategy can present significant risks not only from a reputational perspective but also financially. We plan to continue to faithfully fulfill our tax duties while minimizing tax-related risk.
Tax Policy
- Employees overseeing tax-related matters faithfully fulfill their duties of tax reporting and payment, while maintaining the principle of transparency with the tax authorities.
- In the event tax laws are revised, or other laws, rules or rulings are enacted or amended, we monitor the areas that could apply to the company and review potential risks in advance.
- We fully comply with our duty to faithfully report and pay taxes in accordance with the laws and tax treaties of the countries in which we operate, and fulfill our duty as a taxpayer in close cooperation with the tax authorities of each country.
- We do not exploit differences in tax law between countries, loopholes in the international taxation system or tax havens to transfer income between countries or evade taxes. We ensure that taxable income is legally distributed based on the value created in each country where we do business.
- In response to each country’s BEPS(Base Erosion and Profit Sharing)-related reporting requirements, we appoint outside experts to conduct BEPS risk assessments and reporting projects at our overseas business sites.
- We transparently disclose our tax information through external notices. The financial statements and footnotes in our financial statements contain information of our income tax calculation standards, deferred income tax assets and liabilities, income tax expenses and our tax rate, which are transparently and objectively verified by external audit.
- Hyundai Steel does not attempt to avoid taxes using tax structures that serve no commercial purpose.
- All transactions with our subsidiaries are based on regular prices(normal prices are applied to transactions with third parties that do not have special relations with Hyundai Steel). In addition, the appropriateness of transfer prices is evaluated through confirmation by external experts.
Tax Risk Management
The core of our tax risk management is 'strict legal compliance'. Hyundai Steel maintain transparent relations with the tax authorities and provide relevant factual evidence upon request. We do not own subsidiaries established for the purpose of tax evasion, and do not transfer income to companies located in tax havens. We recognize the risk of double taxation in transfer pricing that involves our overseas business sites as caused by competition between the tax authorities for taxation rights. To address this issue, we abide by the principle of transacting within the 'normal price range'.
Tax Filing
Hyundai Steel operates overseas subsidiaries(18) and overseas offices(9) in 14 countries. We faithfully pay corporate tax in all of these countries every year, and there have been no incidents concerning failure to pay corporate tax. Please visit our Global Offices page to find out more about our overseas business sites(company name, major activities, number of employees, etc.).
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서울시 서초구 헌릉로 12 TEL 02) 3464-6114 FAX 02) 3464-6060
COPYRIGHT(C) HYUNDAI STEEL. ALL RIGHT RESERVED