Legality
- Strict and unconditional compliance with provisions of the applicable tax legislation
Centralization
- The Tax Block is in charge of the strategic management of the tax function and acts as a center providing for the optimal and efficient functioning of the system.
Reliability
- Tax-related decisions are made on the basis of the comprehensive analysis of all available current information and advanced international practices;
- Tax-related decisions are made with account of interests of the long-term sustainable development of the AfriCorp Petroleum Group.
Efficiency
- Using the potential of tax benefits and preferences in the regions of presence;
- Avoiding double taxation;
- Tax-related decisions should not lead to the unreasonable increase in tax obligations;
- Providing the management with reliable tax information necessary for making well-reasoned managerial decisions.
Predictability
- Predicting tax obligations and payments of AfriCorp Petroleum Group entities on a continuous basis with account of external and internal factors affecting the tax burden.
Standardization and Unification
- Adherence to the unified rules and common methodological approaches established by regulations of AfriCorp Petroleum and requirements of the effective tax legislation.
Good faith
- Entities of the Group do not conclude any deals aimed specifically at achieving tax savings nor do they use aggressive practices of tax planning.
Openness
- Interaction with official authorities is based on disclosure of information as provided by the applicable legislation;
- The Group strives to build an open dialogue with official authorities to establish a favorable environment for the development of business and the social sector in the regions of its operations.
TAX RISK MANAGEMENT
A number of documents were adopted in the AfriCorp Petroleum to manage risks, including tax risks: the Risk Management and Internal Control Policy of AfriCorp Petroleum, Provision on Risk Management and Regulation on Tax Risk Management. These documents establish uniform requirements to preventing and identifying risks, including tax risks, assessing their probability and scope of consequence, mitigation measures and monitoring such risks by entities of the Group.
For the efficient management of tax risks the Company continuously monitors information resources to track planned amendments to the applicable legislation and participates in work groups to develop proposals on making amendments to the effective tax legislation of the Nigeria and countries of its operations.
