The company has a high responsibility towards tax obligations and is a large taxpayer, considering tax payments as the most important corporate contribution to the economic growth and social development of the state. The transparency of our financial results and the volume of tax payments are a demonstration of how responsible development of natural and energy resources enables the federal and regional budgets to replenish revenues for the further development of the economy and social sphere.
TATNEFT Group is one of the largest taxpayers in the region of its main presence, plays an important role in ensuring the income of the federal and regional budgets, which contributes to the stable socio-economic development of the territories, the creation of high-quality jobs, the improvement of the welfare of the population and social infrastructure, the growth of added value, development of related industries.
We annually disclose the amounts of taxes assessed and paid, as well as comment on the tax conditions applicable to the Company. We publish this information in the Annual Report of the Company and Management's discussion and analysis of financial condition and results of operations
Information on taxes for 2019 published as part of the Management discussion and analysis of financial condition and results of operations for the three months ended 31 december and 30 september 2019 and years ended 31 december 2019 and 2018
Starting from the 2015 reporting year, Tatneft prepares and publishes a Report on Payments to Governments Resulted from Extractive Activities. The purpose of such disclosures is to provide for transparency in front of society and citizens in relation to wealth generated by natural resources collected by resource-rich countries.
The report is posted on the Tatneft website in the Consolidated Financial Statements section:
This Company's approach is in line with the Global Extractive Industries Transparency Initiative (EITI) https://eiti.org/ru.
The company assesses the importance for stakeholders of a high level of transparency in the tax burden of the business and voluntarily implements appropriate best practices and procedures in its operations, following the best international standards.
The focus of the Company's increased attention is the assessment of the conscientious observance of tax legislation by counterparties involved in the financial and economic activities of TATNEFT Group.
We take into account the trends in international tax policy aimed at preventing unfair actions of taxpayers in terms of the use of tax planning schemes, as well as strengthening requirements in terms of transparency of tax information at the intercountry level. Among these steps is a set of measures developed by the Organization for Economic Cooperation and Development (OECD) to prevent the erosion of the tax base and the withdrawal of profits from taxation (BEPS). At the same time, over the past few years, Russian legislation has introduced measures to increase the responsibility of taxpayers.
FOCUS 2019 -2020
- The company is expanding the format of disclosure of information on the fulfillment of tax obligations in terms of reporting related to corporate responsibility.
- Expanding the area of attention to the requirements of "tax integrity" for the involved counterparties.
- Search and acceptance of effective tax conditions.