Given the autonomy granted to the Group’s subsidiaries, the main tax risks that may arise in connection with their activities relate to the diversity, scale and/or complexity of their operations. These risks mainly relate to tax compliance (late filing of returns, inaccurate returns or omissions in returns) or technical aspects (lack of formalisation, misinterpretation of rules, unanticipated changes in legislation, etc.), but may also have a reputational impact.
Tax issues, like all other financial information, are reviewed on a regular basis by the CFOs of all Group entities, particularly during calls for tenders, at each budget phase, in connection with the preparation of annual and interim financial statements, and whenever required. Each CFO reports directly to the entity’s chairman, to the members of its Board of Directors or other competent supervisory body, as well as to the CFO at the next hierarchical level.
As expressly indicated in the Group’s general guidelines, the CFOs must ensure that financial data is presented in accordance with the standards, principles and procedures in force. Financial data, which includes tax data, is reported, managed and verified using reliable accounting systems that are regularly monitored to ensure that they are functioning efficiently and audited. The employees who use them are provided with training.
For any tax issue, the CFOs can request assistance from the Group’s tax experts, at each division’s main holding companies, in the business lines and at VINCI SA level, and/or external tax advisers, depending on the issue’s complexity and materiality. Any outside consultant providing assistance must pledge to abide by the values expressed by VINCI and particularly those set out in its Code of Ethics and Conduct.
VINCI takes the tax consequences of its operating activities and/or its investments into account and may make use of the options provided by local regulations to alleviate its tax or administrative burden. For instance, VINCI uses the legislative arrangements for research tax credits or accelerated depreciation, creates tax consolidation groups in the countries where this is possible, and benefits from the exemptions offered by local government structures for carrying out projects with multilateral financing. Nevertheless, in all cases, the Group’s fundamental principle is to reject the use of aggressive tax planning or other artificial structures designed in particular to avoid paying taxes, as well as any participation in other arrangements mainly for tax purposes that would offer no real commercial advantage. Similarly, whenever VINCI maintains a presence in a country considered as a tax haven, it is uniquely as a result of its operating activities (e.g. construction of the Atlantic Bridge in Panama). If a tax risk is identified, proportionate solutions are designed and implemented, in collaboration with the relevant tax and financial teams, in order to minimise this risk. These analyses and solutions are regularly updated in line with changes in projects and the Group’s organisation, as well as legal and regulatory developments. Whenever necessary, they are discussed and reviewed with auditors and/or the competent tax authorities.
One of the Group’s key expectations of its subsidiaries is that they build and maintain good, transparent and constructive relations with the tax authorities in each of the countries where they operate. In April 2019, in line with this commitment to transparency and cooperation, VINCI SA, with all its consolidated subsidiaries, was one of the first companies to sign up to France’s new tax partnership programme, founded on trust-based relationships and one of the measures implemented under the Government Reform Act for a Trust-based Society (ESSOC).
In this context of climate emergency, the environment is VINCI’s strategic priority. The Group tackles it with the aim of playing an active role in the ecological transition of buildings, infrastructure and mobility. VINCI is aware of the responsibility it bears, due to the nature of its business activities, but also recognises its ability to contribute positively to the energy transition. That is why the Group has set its environmental ambition for 2030, with a twofold objective: significantly reducing the direct impact of its activities and helping its customers and partners to reduce their own environmental footprint. To achieve this ambition, VINCI is mobilising its teams and its potential for innovation to accelerate the transformation of its business lines and the creation of environmental value in the projects it leads for its customers, as well as in the services it provides for its infrastructure users and partners. The integrated design-build-operate approach helps reduce environmental impact at each stage in a project’s life cycle. The development of partnerships with external stakeholders is focused on this same goal.
