Annual Report and Sustainability Report 2020


KONGSBERG is transparent in our approach to taxation and our tax positions

Responsible Tax – our Tax Policy

KONGSBERG’s international presence means that we must comply with a wide variety of tax systems in many countries. In our opinion, a responsible approach to taxation is decisive for our long-term activities in the countries in which we operate. This includes identifying and complying with current tax legislation, disclosing all the necessary information to the relevant authorities, and taking prudent tax positions where tax legislation allows different interpretations or choices.

Tax governance

KONGSBERG’s objective is to comply with tax laws in a responsible manner and to have open and constructive relationships with tax authorities in the countries where we operate.

KONGSBERG has a central Tax Department who reports to the Corporate Management, and whose primary purpose is to ensure compliance with our Tax Policy throughout the Group. The Tax Department and local management of the Group’s companies ensure compliance with local requirements for tax reporting in the countries in which KONGSBERG operates, supported by internationally recognised tax advisers. The Tax Department regularly follow up the external advisers.

Tax risk management

KONGSBERG has operations in industries and countries that can carry different types of risk. We conduct risk analyses and strive to prioritise and manage the risks of preventing and mitigate them to the greatest extent possible.

Our tax team seeks to deliver clear, timely and relevant business advice on tax matters. KONGSBERG manage risk through appropriate risk management processes, controls and guidelines. We follow up the management of tax risk primarily through the regular tax reporting that gives us an effective opportunity to track tax risk.

Where there is uncertainty surrounding the interpretation of tax laws, we will seek second opinions from external tax advisers, having established our own understanding of the position, and/or seek to resolve the uncertainty by dialogue with tax authorities.

Our approach to tax risks follows the same principles that apply to all other business risks. We consider reputation and corporate social responsibility as well as purely financial impacts. When making decisions on tax we consider the materiality of any item, as well as the costs of effective risk mitigation actions. By being compliant in terms of local tax legislation, we aim to minimize tax risk.

A responsible approach to taxation is essential for our long-term activities in the countries in which we operate.

Relationships with authorities and transparency

KONGSBERG is transparent in our approach to taxation and our tax positions. We aim to build and sustain relationships with tax authorities that are constructive and based on mutual respect. We seek to work in collaboration with tax authorities wherever possible to achieve agreement and certainty, and to prevent and resolve disputes.

Our aim is that the tax reporting complies with applicable local tax legislation, as well as with current international reporting requirements and accounting standards such as IFRS.

KONGSBERG supports international efforts to increase public trust in tax legislation and tax management of multinational businesses, including the Global Reporting Initiative’s standard development.

Attitude towards tax planning

  • We engage in efficient tax planning that supports our business and reflects commercial and economic activity.
  • We do not engage in artificial tax arrangements.
  • We adhere to relevant tax rules and their intent.
  • We work to minimize the risk of uncertainty or disagreement.
  • We conduct transactions between KONGSBERG’s business areas on an arm’s-length basis and in accordance with current OECD principles.

The commercial aspects of KONGSBERG’s business activities are paramount, and all tax planning should be done with this in mind.

Tax incentives and exemptions are sometimes made available by governments and fiscal authorities in order to support investment, employment and economic development. Where they exist, and are granted to us, we seek to apply them in the manner intended.

We establish entities in jurisdictions suitable to hold our investments, taking into consideration our business activities and requirements, and the regulatory environment available to us.

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