SELECTA’s approach to tax
Headquartered in Switzerland since 1957, Selecta Group (“Selecta” or “Group”) is Europe’s leading route-based, self-service provider of great quality coffee and convenience food solutions in the workplace and public spaces, with a diverse portfolio of brands. Selecta has its geographic footprint in 16 European countries. An annual turnover of approximately EUR 1.1 billion (2021) is a testament to the passion and dedication of more than 7,000 highly skilled Selecta employees, providing great quality coffee brands and convenient food and beverages concepts for the workplace, on‐the‐go as well as hotels, restaurants and cafes (“HoReCa”).
Selecta maintains a Code of Conduct that is solidly aligned and consistent with Selecta’s values. It contains strict and unambiguous prohibitions against artificial and false records, which extends to tax filings and information shared to with tax authorities. Each employee must clarify that he or she will abide with this Code of Conduct.
Consistent with its Code of Conduct, Selecta is committed to aligning its position with the local tax authorities in each relevant European jurisdiction it operates and to having open and constructive discussions with those local tax authorities. Selecta follows a policy of full disclosure in its dealing with the European tax authorities.
Our commitment is underpinned by the following principles:
1. Tax strategy
a. Tax planning
Selecta does not engage in artificial arrangements, i.e. those without business or commercial substance. Rather, Selecta considers tax outcomes which support its business model and aligns with its commercial activities. Selecta has a responsibility to its shareholder to be financially efficient and deliver a sustainable tax rate.
b. Effective collaboration with the tax authorities
Selecta seeks to build and sustain relationship with tax authorities that are constructive and base on mutual respect. Selecta works collaboratively with myriad tax authorities when replying to queries and provide information-clarifications in a timely and precise manner. Such constructive collaboration and open communication with the tax authorities extends to the efficient closing of various tax audits and controversies.
Selecta supports the principle behind multilateral initiatives toward greater transparency that increase the understanding of tax system and build public trust.
2. Risk management
a. Governance and control environment
Selecta’s HQ Tax Team in close collaboration with the local teams are mainly accountable for coordinating the Selecta’s tax approach. Selecta HQ Tax Team is also responsible to ensure that policies and procedures supporting the approach are implemented, maintained and consistently applied across Europe.
Selecta is subject to tax rules in different European jurisdictions. In order to be compliant with tax rules, directives and processes, Selecta cooperates and seeks for external advice only from reputable tax firms.
The HQ Tax Team and Chief Financial Officer have the overall ownership for tax risk and tax governance. Selecta uses its in-house finance-tax teams and professional consultants to manage its day-to-day tax affairs.
The Group is mindful of the fact that occasionally risks will arise. Therefore, to comply in full with our legal obligations and our commitment to be a responsible business there is a need to proactively identify, evaluate, monitor and manage these risks which is done primarily through our in-house finance-tax teams being actively involved in delegation of authority structures, business strategies and transactions at an early stage. Where there is significant uncertainty or complexity in relation to a risk, we take appropriate professional advice and/or discuss the matter with the tax authorities, as the Group has a low tolerance to tax risk.
b. Risks assessments
Selecta is regularly subject to tax audits and reviews. Given the fact that those assessments could take long to be concluded and their outcome is uncertain, Selecta calculates provisions. Provisions are made for known issues based on management’s interpretation of country-local specific legislative frameworks and the likely outcome of negotiation or litigation. The assessments and management as well as the risk are monthly reviewed by the upper management, internal audit and external consultants.
Our published tax strategy is in alignment with the business strategy-vision of the Group. It applies to all entities of the Group.