fdseminar wat wil de fiscus? christine plasmans - mazda
TRANSCRIPT
Mazda Motor Logistics Europe – WillebroekFD SEMINAR 18/06/2015
1
Christine PlasmansCFO
OUR PRODUCTS:
2
CARS : 90% of turnover!
6 carlines
Spare parts (service & warranty) and Accessories
CX-5
3
Mazda 6
4
Stylish, insightful & spirited
Mazda 3
5
Mazda 2
6
Stylish, insightful & spirited
MX-5 Roadster Coupe
7
CX-3
8
MCJapan
Central entrepreneur
Non-Europe
Europe
MICJapan
Trading Company
MMEGermany
European HQ
MLEBelgium
European Logistics & Distribution Centre
NSCsLocal countries
Local Distribution
Third Party
Manufacturer P&A
Independent Distributors
(minority)
Retailers
Retailers
Vehicles andP&A
Vehicles andP&A
Vehicles andP&A
Vehicles andP&A
ServicesSupply vehicles
Supply P&A (Parts &
Accessories)
Supply vehicles
EUROPEAN BUSINESS MODEL
EUROPEAN LEGAL STRUCTURE
NSC’s with TPMMR: no TP
NSC TP METHODOLOGYGEOGRAPHICAL SCOPE
ES
IE
UK
PT
FR
BE
NL
DK
DE
RU
IT
CH AU
SI HR
PL
CZSK
HU
TR
NO
SE
One TP methodology to meet 21 local legislations
12
MAZDA’S EUROPEAN TP POLICY KEY CHARACTERISTICS
MMCJapan
IndependentDistributors(minority)
NSCs Retailers
Retailers
MICJapan
Resale Price Minusbased transfer price
Resale Price Minusbased transfer price
Resale Price Minus
based transfer price Resale price
Cost-Plus based gross profit margin
for aggregate of functionsCosts+Z%
(Agreed with TP tax inspector)
(Berry ratio)Gross profit margin:
NSC Costs + X-Y % *
Belgium
MLE
Costs based gross profit margin
EntrepreneurResidual Income
(*) Note: - Profit mark-up calculated on value added costs only - No mark-up on disbursements
13
MAZDA’S EUROPEAN TP POLICY Allocation of roles
Company Functions
MC (Japan) Manufacturer of vehicles and spare parts (all risk taker)
MIC (Japan) Trading company
MLEBelgium
Core: European distribution and logistic services
– Takes title to goods / Low risk Subordinated: European intragroup shared services, subordinated but ancillary to logistic activities
– Finance, accounting, treasury and administration support for NSCs– Information Systems support– Customs clearance services– Group cost consolidation point for locally/contract manufactured products
Shareholding (no management involvement) Branches (no management involvement / functionally separate enterprises)
MME (Germany) European Headquarter – Financial strategy– Sales & Marketing support– Customer Services– Public Relations– Human Resources support– Legal support
European Research & development
NSCsVarious countries
Local distribution and sales– Local sales, marketing and branding support– Coordination and supervision of retailer network
NSC in scopeNSC excluded from the scope
TRANSFER PRICING DOCUMENTATIONGEOGRAPHICAL SCOPE
ES
IE
UK
PT
FR
BE
NL
DK
DE
RU
IT
CH AU
SI HR
PL
CZSK
HU
TR
NO
SE
One TP methodology but 21 local documentation sets (meet local requirements) based upon master file prepared centrally!
15
TRANSFER PRICING DOCUMENTATIONCOUNTRY SEGMENTATION
Low risk countries
Moderate risk
countries
High risk countries
Level of documentation required
Country transfer pricing risk
Country importance of the intercompany transactions
=> Step approach – Different levels of documentation.
16
TRANSFER PRICING DOCUMENTATION RISK ASSESSMENT
Factors considered in the country risk analysis :
Timing of transfer pricing documentation
Penalties associated with insufficient information
Level of documentation requirements (content/form) in that country
Requirements for local benchmarking
Level of sophistication of local tax authorities
Time limits upon request to submit documentation set
Materiality of the NSC (multiplicator)
17
TRANSFER PRICING DOCUMENTATION Internal RISK ASSESSMENT
Countries TP Risk Materiality Overall assessment
Croatia Low Low LowCzech Republic Moderate Low LowIreland Low Low LowHungary High Low LowNetherlands Moderate Low LowNorway Moderate Low LowPortugal High Low LowPoland High Low LowSlovenia High Low LowSlovak Republic Moderate Low LowSweden Moderate Low LowSwitzerland Low Moderate LowTurkey Moderate Low LowAustria Low High ModerateBelgium Moderate Moderate ModerateDenmark Moderate Moderate ModerateFrance Moderate Moderate ModerateGermany Moderate High HighItaly Moderate High HighSpain Moderate High HighUnited Kingdom High High High
18
STATUS ON MAZDA’S EUROPEAN TP POLICY BENCHMARK ANALYSIS - APPROACH
Regular update in line with OECD guidelines (by PWC)
Pan-European applicability of results (country scope)
5 year period (2009-2013)
According to German criteria (that are considered the strictest):
Rejection of non-independent companies (select A+ A A-)
Rejection on the basis of consolidated accounts
Rejection of inactive companies
Working capital adjustments
Sufficient data sets (3 years)
Excluding loss making companies (cumulative 5years loss)
Manual exclusions and validation through web search (activity)
19
MAZDA’S EUROPEAN TP POLICY
Country-by-country reporting: filed in home country – Japan
Transparent and common chart of account/ way of accounting.
Documentation set: master file – local file
Substance of entity taxable result
Anticipate what tax auditors expect
20
MAZDA’S EUROPEAN TP POLICY