Colonial adheres to the Code of Best Tax Practices as a result of the resolution adopted by the Colonial Board of Directors in its session on 10 December 2015. In this regard, certain behaviours that are compulsory for the company have been developed including:
- Colonial's tax strategy must have been established by its Board of Directors, documented and known to the company's senior executives.
- The Board of Directors must have approved the operations and investments with special tax risk.
- The company's risk management policy must include measures to mitigate the tax risks identified and have established internal corporate governance rules in this area and compliance with which may be subject to verification.
- The company must have used effective information systems and internal control of tax risks, insofar as its design and operation are fully integrated into the general internal control systems of the business it undertakes.
During 2022, Colonial presented the Annual Tax Transparency Report for 2021, following the proposal for the reinforcement of good corporate tax transparency practices of the companies adhering to the Code of Good Tax Practices.
Likewise, in compliance with the Corporate Governance regulations on tax matters and the Code of Best Tax Practices, the Audit and Control Committee is periodically informed of the company's tax situation.
In relation to tax issues, Colonial tries to respond to all the questions that are raised by the different stakeholders through the different existing communication channels. Colonial offers its employees, directors, shareholders, suppliers, contractors and subcontractors a Ethical Channel through which they may confidentially and anonymously raise any query or report any irregularity of which they become aware and which falls within the scope of the Code of Ethics.