Cubico Group Tax Policy
Financial Year Ending 31 December 2022
This policy applies to Cubico Sustainable Investments Holdings 1, LP (‘Cubico’) and all group entities globally.
Cubico has two full-time tax professionals based in the London office and another tax and accounting manager in Mexico. In other countries of operation tax is managed through a combination of in-house and external resource, with the UK based Tax Manager and Tax Director retaining oversight and sign-off.
Our tax policy comprises five key components:
- Commitment to compliance
Cubico is committed to compliance with tax law and practice globally. Cubico’s interpretation of compliance means paying the right amount of tax in the right place at the right time. Cubico seeks to adhere to all reporting obligations whilst disclosing all relevant facts and circumstances to the tax authorities, including details of any reliefs and incentives claimed.
In respect of corporate taxes, in all countries tax returns are prepared and reviewed by tax professionals with the relevant local knowledge and experience. This can vary from a fully in-house tax compliance process such as in the UK to a full outsource model such as in Brazil. When outsourced there is an appropriate internal review of the tax returns prior to submission.
In respect of other taxes:
- A multinational payroll provider performs payroll tax compliance globally;
- Indirect tax returns are prepared or reviewed by experienced professionals. These may be in-house or external.
Where required external advice is obtained to ensure our obligations are met in all countries of operation.
- Responsible attitude to arranging our tax affairs
In structuring its commercial activities, Cubico considers, among other factors, the tax laws of the countries in which Cubico operates. These tax laws are continually changing and are often open to interpretation. Cubico is prudent in its approach to tax law whilst maximising value on a sustainable basis for investors and employees. For example, Cubico will look to take steps to reduce the risk of double taxation (i.e. the same income being taxed twice in two different jurisdictions). Cubico’s overall group structure and any structuring which is undertaken (such as for acquisitions or divestments) will always have commercial and economic substance and will not involve any arrangements that are contrived or artificial. In respect of its tax policy, Cubico has full regard to the potential impact on its reputation and that of its investors.
- Effective risk management
The business of the Cubico group consists of owning and developing renewable energy projects and energy infrastructure. Cubico invests in projects on a worldwide basis. Risks will inevitably arise occasionally in relation to the interpretation of complex tax law. Cubico actively seeks to identify, evaluate, monitor, and manage these risks to ensure they remain in line with its objectives. Where there is significant uncertainty or complexity in relation to a risk, external advice is regularly sought, particularly in relation to acquisitions and disposals of assets.
- Constructive approach to engaging with tax authorities
Cubico engages with tax authorities worldwide with honesty, integrity, respect and fairness and in a spirit of co-operation. Wherever possible it does so on a real time basis to minimise tax risk and uncertainty. Cubico does not take positions on tax matters that may create reputational risk or jeopardise its good standing with taxing authorities. Cubico is, however, prepared to litigate where it disagrees with an interpretation, ruling or decision of a tax authority, having always first sought to resolve any disputed matters through active and transparent discussion.
- Board ownership and oversight
This tax policy is aligned with the Cubico General Code of Conduct, in particular Chapters IX and X.
This policy is approved and owned by the Executive and overseen by the Board.
Cubico Sustainable Investments Holdings 1, LP regards this publication as complying with the duty under para 16(2) and para 25(1), Sch 19 FA16.