Ethically correct payment of corporate taxes
The ethically correct payment of corporate taxes plays an important role for HUGO BOSS in its global economic and social relationships. In the countries in which it is present the Company is responsible for its activities and makes an important contribution towards funding public services. This supports the development of the infrastructure required for a sustainable economy.
Internal structures and processes at HUGO BOSS have been clearly defined, aiming at compliance with applicable tax laws. Overall responsibility for all tax-related matters at HUGO BOSS lies with the Chief Financial Officer. The central Finance and Tax department, which regularly analyzes and assesses all tax-related issues, reports to him. Its assessment is an integral part of Group-wide risk management, although local external experts are also consulted for their opinion. The Managing Board as a whole is provided with a comprehensive update on the Group’s tax position and all relevant tax-related matters on a regular basis. The Supervisory Board is also updated regularly about tax-related matters.
Compliance with applicable tax laws is the principal target in all areas of the Company. The ethically correct payment of corporate taxes plays a key role for HUGO BOSS in tax compliance.
HUGO BOSS generally pays tax on income in the countries in which it is generated, and when disclosing it complies with internationally accepted standards and corresponding local laws. The HUGO BOSS tax strategy can be consulted on the Company’s website. group.hugoboss.com
The Group Tax department is responsible for developing guidelines and instructions for all tax-related processes and keeping them up to date. The Group Tax department also conducts staff training courses on a regular basis. Risk Report, Report on the Accounting-Related Internal Control System and the Risk Management System
HUGO BOSS does not maintain any Group structures for the purpose of aggressive tax planning or tax avoidance. This is also reflected in the broadly stable Group tax rate over the past few years. In fiscal year 2018, the Group tax rate was 30% (2017: 30%). A reconciliation between expected and actual Group income tax expense is shown in the Notes to the Consolidated Financial Statement. Notes to the Consolidated Financial Statements, Note 6