As with adherence the entire legal framework, tax compliance is an integral part of our applied compliance systems at RAG. This applies to all of the company’s tax obligations, and to recourse to tax relief and subsidies, such as research tax relief. Although tax law permits the exercise of elective rights, RAG has not implemented a tax (or tax avoidance) strategy. All of our tax relations have a direct local connection to our operations, and we do not have any links whatsoever to tax havens. Our long-term tax ratio corresponds with the corporation tax rate. The most recent audits by the tax authorities confirmed that the company is not exposed to any material tax risks.
Regular tax settlement takes place internally in accordance with the four-eyes principle. Our accountants provide support with specific activities, such as preparing tax returns. Reviews of the calculation of tax liabilities and the preparation of tax returns are part of the ICS.
The highest executive-level position responsible for tax-related matters is the CFO, Michael Längle, while Head of Finance Peter Fleischhacker is responsible for internal tax matters; both of them are qualified accountants.
As part of its involvement in representative bodies, RAG participates in the process of amending tax legislation and introducing new tax laws, especially in relation to future energy solutions – such as the tax treatment of hydrogen – with a view to playing its part in ensuring appropriate and workable tax settlement.
Besides conventional taxes and levies, RAG also makes payments to the mining authorities based on net production (royalties), the area of producing fields used (mining fees) and the average working gas volume (storage fees), in accordance with the EPS agreement.
