Skatteudvalget 2017-18, Erhvervs-, Vækst- og Eksportudvalget 2017-18
SAU Alm.del Bilag 102, ERU Alm.del Bilag 98
Offentligt
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ATP’s view on global investments
Public hearing about tax
January 11 2018
Bo Foged, Group CFO, ATP
ATP’s view on global investments
January 11 2018
 ERU, Alm.del - 2017-18 - Bilag 98: Præsentationer fra Skatteudvalgets og Erhvervs-, Vækst og Eksportudvalgets høring den 11. januar 2018 om: Paradise papers, tax havens and the digital economy
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Agenda
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Why and how does ATP invest globally?
●
ATP’s tax policy for unlisted investments
●
Tax transparency - ATP’s tax footprint 2017
ATP’s view on global investments
January 11 2018
1
 ERU, Alm.del - 2017-18 - Bilag 98: Præsentationer fra Skatteudvalgets og Erhvervs-, Vækst og Eksportudvalgets høring den 11. januar 2018 om: Paradise papers, tax havens and the digital economy
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Why and how does ATP invest globally?
Why does ATP invest globally?
•
Historically low interest rates and the hunt for investment return
•
Access to global investments leads to better risk diversification
ATP’s tax position – how do we operate?
Identical tax
position in both
structures
Investing through a
transparent entity for tax
purposes
(”Limited partnership/fund”)
Direct investments
Why are jurisdictions like Cayman Islands used?
•
Attractive investment opportunities
•
Ease of doing business - specialized infrastructure by applying (UK)
common law and expert knowledge in capital markets and well-proven
case law
•
Pension yield tax of all
investment returns
(both realized and non-
realized income)
ATP
ATP
DK
•
No taxable presence
•
No withholding tax
Transparent
entity for tax
purposes
Cayman
Islands
•
Cayman Islands has committed to OECD’s Common Reporting
Standards (CRS), which facilitates exchange of information on
investment income for investors between countries, including Denmark
•
The activity is taxed
locally
•
Withholding tax, if
applicable for ATP
Activity
Activity
US
•
A reliable and consistent tax treatment of limited partnerships from an
international perspective
ATP does not achieve a better tax position (save taxes) by investing
through a foreign limited partnership/fund
January 11 2018
2
ATP’s view on global investments
 ERU, Alm.del - 2017-18 - Bilag 98: Præsentationer fra Skatteudvalgets og Erhvervs-, Vækst og Eksportudvalgets høring den 11. januar 2018 om: Paradise papers, tax havens and the digital economy
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ATP’s tax policy for unlisted investments
A few highlights from ATP’s tax policy
●
ATP complies with current tax law and practice in Denmark and in the
countries where ATP invests
In ATP's opinion, an aggressive tax behavior does not contribute to
long-term value maximization of an investment
●
●
ATP's focus is to ensure, that the largest part of its returns is brought
home for taxation in Denmark
ATP takes an active approach to handle potential tax risks through
active tax due diligence:
I.
II.
●
ATP’s expectations to partners and companies in which ATP
invests
I.
Not to engage in tax evasion
Identifying tax risks when entering new investments
Monitoring changes in tax rules and tax practice
II.
III.
Taxes should be paid where the economic value is generated
Structures applied should not conflict with OECD’s guidelines (BEPS)
to comply with it – is also included in the contractual basis as an
appendix
IV.
ATP informs its business partners of ATP’s tax policy and expects them
ATP’s blacklist
•
ATP only invests in jurisdictions that have adopted the Common
Reporting Standards (CRS)/FATCA
V.
ATP makes efforts to perform random checks to verify if its business
partners comply with ATP’s tax policy
in order to agree on a solution and ensure future compliance
•
ATP does not invest in jurisdictions that are on the EU blacklist (EU list
of non-cooperative tax jurisdictions)
ATP does not use financial instruments for tax planning purposes and
does not engage in dividend arbitrage
VI.
Active dialogue the relevant business partner in case of non-compliance
•
ATP’s view on global investments
January 11 2018
3
 ERU, Alm.del - 2017-18 - Bilag 98: Præsentationer fra Skatteudvalgets og Erhvervs-, Vækst og Eksportudvalgets høring den 11. januar 2018 om: Paradise papers, tax havens and the digital economy
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Tax transparency - ATP’s tax footprint 2017
Danish pension yield tax and corporate tax 2012-
25.000
ATP tax footprint 2017
2%
15%
20.000
15.000
DKKm
10.000
5.000
0
2012
-5.000
-10.000
2013
2014
2015
2016
2017
81%
DKK
3.5 bn
1,8%
0,04%
Pension Yield Tax
Employee tax
Corporate tax
VAT and Payroll Tax
Withholding tax
In the last six years ATP has paid more
than
DKK 38 billions
in Danish pension
yield tax and corporate tax
The tax footprint for 2017 does not include VAT and taxes paid locally by foreign entities invested in by
ATP. The overview only includes withholding taxes withheld by the foreign entities when paying out
dividends or interest to ATP.
The withholding tax included covers the withholding tax paid in 2016 as the numbers for 2017 are not yet
finalized.
ATP’s view on global investments
January 11 2018
4