Rabobank applies a customised policy for complex transactions that is intended to ensure, from a tax compliance perspective, that the bank acts in accordance with the aims of tax laws and does not cooperate in transactions primarily designed to evade taxes. The tax authorities are expected to pursue an approach that does justice to a reasonable application of the law and to the rights of Rabobank as a taxpayer. Rabobank applies a policy principle that it does not provide tax services or perform trust activities. In all countries in which it is active, Rabobank remits taxes in accordance with the aims and purport of the law. It also does not engage in artificially reducing the effective tax burden. Evidently, this does not mean that Rabobank remits more tax than reasonably derived from the law, as the bank does not accept unnecessary expenditure in the form of taxation. Moreover, terms such as 'fair share'and 'a reasonable application ofthe law'always remain open to debate. Rabobank therefore does not aspire to absolute correctness and consistency in this connection, but always transparently presents the choices it has made and possible areas of doubt to the competent tax authorities. Rabobank gives them an opportunity to express their views in good time and takes account of those views in its considerations regarding the choices to be made. Through banking investments in and involvement with locally established financial institutions, Rabobank aims to make a positive contribution to the economies of developing countries. The same applies to the charitable activities of Rabobank Foundation. Rabobank does not aim to be involved in or via developing countries in tax constructs that lead to lower tax payments. Customer dialogue The aim of Rabobank's customer dialogue is to facilitate discussion with customers of risks in environmental, social and governance issues (such as human rights, biodiversity and other topics) in connection with financial products and services and to limit the adverse effects of those risks. In the reporting year, Rabobank developed a systematic and structured approach for entering to dialogue with customers in case of controversies involving customers. In addition, the risk analyses of customers are being improved in order to aid timely identification of risks and proactively discuss them with customers to prevent problems in their operations or value chains. The basis for the engagement process is Rabobank's sustainability policy for 12 sectors, as well as policy on human rights and biodiversity. That policy is decisive for the financing process and for talks with customers on internationally accepted norms and standards and the minimum standards applied by Rabobank. Talks in the palm oil industry are an example of dialogue with customers. This dialogue was conducted in various ways: (1) dialogue with individual customers on the risks and possibilities of improving their operations following allegations of non-compliance with international norms and standards set by the Round Table on Sustainable Palm Oil (RSPO); (2) dialogue with customers via the RSPO on the basis of Rabobank's role as a board member; and (3) joint dialogue with palm oil customers on various topics on behalf of their financial services providers. In 2013, Rabobank engaged in dialogue with 5 customers on topics ranging from sustainable land management on palm oil plantations to human rights issues. Annual Report 2013 Rabobank Group

Rabobank Bronnenarchief

Annual Reports Rabobank | 2013 | | pagina 33