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Snam tax policy

Snam tax policy

Snam’s fiscal policy is based on the respect of the principles of the Code of Ethics

Snam’s fiscal policy wholly comply with the ordinary course of Italian fiscal provisions, which do not allow any fiscal optimization strategy. Furthermore, Snam fiscal policy is based on the respect of the principles of the Code of Ethics, of the Administrative liability (Model 231) and of the Company Corporate System Framework.

The correct fulfillment of fiscal obligations is assured by Snam internal provisions (procedures and directives, which define roles and responsibilities, functions of analysis and planning, functions of operativeness and control, conditions of the information flow, with the related instructions of traceability).

The process is relevant in respect of the aims of Internal Control over the Financial Reporting System and, consequently, the internal fiscal provisions define and assign to the competent functions the related control activities.

In December 2019, Snam was admitted to the Cooperative Compliance, a regime established under national tax legislation. This regime, in line with international best practice, requires an adequate system for detecting, managing and controlling tax risks and is based on a closer relationship of trust and collaboration with the Financial Administration. The adhesion to the Cooperative Compliance, which also concerns the subsidiary Snam Rete Gas, will allow to increase more and more the level of certainty on relevant tax issues through a constant and preventive discussion on situations likely to generate tax risks.

Referring to the main stakeholders, the Added Value was distributed as follows:

  • Employees 9.6% (-1.5 percentage points compared to 2018) as direct compensation consisting of wages, salaries and severance pay and indirect compensation consisting of social security contributions and staff-related service costs (canteen services, reimbursement of travel expenses); this decrease is due to the extraordinary components recognized in 2018 relating to the redundancy charges, in application of the early retirement instrument regulated by art. 4 paragraphs 1-7 of the Law 92/2012 so-called "Fornero Law".
  • Government 14.4% (+0.4 percentage points compared to 2018) – through the payment of direct and indirect taxes;
  • Shareholders 28.9% (-0.6 percentage points compared to 2018) - through distributed dividends with a policy consistent with 2018.
  • Lenders 7.8% (-2 percentage points compared to 2018). Reduction is due to a decrease in charges financial following the actions to optimize the financial structure launched in the previous three years, and, in particular, from liability management operations.
  • A total of 39.2% of the gross global added value produced by Snam was reinvested within the Group (up compared with 2018: +3.7 percentage points), of which around 68.4% was intended for the amortisation of assets (77% in 2018).
  • Lastly, approximately €3 million was designated for local communities (0.1% of the generated value) through donations, sponsorship initiatives and environmental compensation pursuant to the law.

 

Distribution of added value (%)

 

 INCOME TAXES

 

Income taxes (€375 million) break down as follows:

(€ million) 2017 2018 2019
Current taxes:      
- IRES 301 313 339
- IRAP   59   60  62
  360 373 401
Deferred and prepaid taxes:      
- Deferred (16) (16) (14)
- Prepaid (15) (16) (12)
 - Adjustment to deferred taxes (Robin Hood Tax)      
  (31) (32) (26)
       
  329 341 375

 

Income taxes amounted to €375 million, comprised of €401 milion in current taxes partially offset by net deferred tax assets totalling €26 million.

The Snam Group is present on the national territory, through the fully controlled operating companies Snam Rete Gas S.p.A. and Infrastructure Transport Gas S.p.A. (ITG), GNL Italia S.p.A. and Stogit SpA, through which it oversees respectively the transportation, regasification and storage of natural gas. It is also present, through Newco and / or companies acquired during 2018 and 2019, in the sustainable mobility, energy efficiency businesses and biomethane.
Snam is present internationally through its subsidiaries Gasrule Insurance DAC, based in Dublin, and Snam International BV, based in the Netherlands, responsible for the tax obligations established by the respective national tax laws.
It also operates in Europe, also through agreements with major players in the sector and direct participation in the company's share capital, operating in the main continental energy corridors. Through its investee companies, it is present in Austria (TAG and GCA), France (Terēga), Greece (Senfluga) and the United Kingdom (Interconnector UK) and is one of the main shareholders of TAP (Trans Adriatic Pipeline).

Snam S.p.A. has also duties of strategic direction, direction and coordination of its subsidiaries.
Snam makes available to the public the annual, consolidated and separate financial statements of Snam S.p.A .: in the Balance Sheet there are the payables / receivables for tax and in the Income Statement the taxes and the tax rate for the period.

Below is a link to Snam’s web site from which you can extract the Group’s financial statements
 
http://www.snam.it/en/Investor_Relations/Reports/index.html

With regard to corporation tax (IRES), Snam opted for the Italian tax consolidation regime, to which all Italian consolidated companies have formally adhered, with the exception of Tea Servizi S.r.l. and  Renerwaste S.r.l. and their subsidiaries (companies not having requirements needed to adhere for 2019 fiscal year). 

Read the Snam Code of Ethics

Read the Snam Code of Ethics

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Find out more in Snam annual report

Find out more in Snam Annual Report

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Find out more about Business ethics and governance

Find out more about Business ethics and governance

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updated
30 June 2020 - 15:48 CEST