This paper sets out the tax strategy of Recipharm AB (publ) and its subsidiaries (the “Group”), and in making this strategy available. This tax strategy applies to the year ending 31 December 2020 and continues until superseded. It covers the Group’s approach to arranging its tax affairs.
Recipharm was established in Sweden in 1995 and has since grown to become a leading Contract Development and Manufacturing Organisation (CDMO). Headquartered in Stockholm, we employ around 9,000 people. Our company unites over 30 facilities across 10 different countries, offering a range of services across four business segments.
The Group seeks to maximise shareholder return which includes efficiently managing the Group’s total tax liability while ensuring that all tax decisions taken by the Group consider relevant laws, regulations and the commercial substance of transactions. All tax planning must have a sound and genuine commercial rationale, and all business planning must take tax considerations into account.
Risk Management and Governance
The Group has a low tax risk appetite and is focused on compliance. It aims to maintain a low tax risk rating. It is committed to (a) comply with all tax legislation requirements, (b) file its returns in a timely and accurate manner and (c) pay the appropriate amount of tax at the right time.
The Group’s tax strategy reflects its status as a leading CDMO which requires strong governance and consideration of its reputation, while delivering returns to its shareholders. As part of its controls, the Group seeks to identify, evaluate, monitor and manage tax risks to ensure it complies in full with its legal obligations and its strategy of being a responsible business. Where there is significant uncertainty or complexity in relation to a risk, the Group takes appropriate professional advice and/or discusses the matter with the relevant tax authority.
This tax strategy document applies to the Group and the document has been approved by the Board of Directors of Recipharm AB (publ). The Board has ultimate responsibility for tax matters and fulfilling compliance requirements within the Group. The Finance teams of the Group are accountable for the implementation of the tax strategy and the management of tax and related risks.
Dealings with Tax Authorities
The Group engages with tax authorities openly and honestly and in a spirit of co-operative compliance. We regularly communicate with tax authorities to discuss business updates and any relevant tax issues that arise.