Tax Policy

Goodwell is an investor in sustainable development. We aim to be a responsible investor conducting ourselves with responsible behaviour, including in matters of taxation.

We recognize that taxes play an essential role in supporting public goods and services, and we are committed to adopting proper analysis, monitoring, and decision making around tax matters/issues concerning our investments, customers, and portfolio companies.

We believe in the principle that tax should follow business and consequently profits are allocated to the countries in which business value is created.

We undertake to comply with international tax laws, regulations, and best practices adopted by comparable institutions. Specifically, we will comply with the OECD BEPS and the EU’s ATAD, as well as all other applicable laws and regulations related to taxation.

In addition, we undertake to comply with all tax law and regulations, including proper tax registration, administration (e.g., filings), and reporting on tax-related matters. We recognize that transparency and accountability in these matters are essential, and we will take all necessary steps to ensure that our tax-related practices are in compliance with applicable laws and regulations.

We confirm our adherence to the following principles:

• We invest in companies which pay taxes in the country in which they operate.
• We will not support structures or actions that contribute to tax evasion or tax avoidance (which is not illegal, but which may be damaging to communities in which we operate), including the prevention of tax treaty abuse and harmful tax practices.
• We will not use structures that are listed as EU non-cooperative jurisdictions.

The list adopted by the Council on 14 February 2023 is composed of:

• American Samoa
• Anguilla
• Bahamas
• British Virgin Islands
• Costa RicaGoodwell Responsible Taxation Policy – 2023
• We require our affiliates, portfolio companies, and commercial partners to approach tax in a responsible manner. We will monitor their activities and take necessary steps to address and resolve any undesired tax situations that are contrary to the principles herein.
• We undertake to report and keep our investors informed of matters that may materially impact their interests, including tax-related matters.
• We are transparent in matters relating to tax.

We recognize that responsible taxation is an ongoing process, and we are committed to continually improving our tax-related practices. Therefore, we will regularly review and update this policy as needed to reflect changes in tax laws, regulations, and best practices.

The responsible tax policy process and tools consist of three main sections:

A) Investment criteria and process, which involves assessing tax practices and financing structures during the preparatory phase, ensuring transparency of financing and ownership arrangements, and checking for arm’s length pricing and received tax benefits. This means that:

•  we are committed to an internal tax analysis and documented tax due diligence as part of the investment due diligence on portfolio companies.
• Identifying high risk tax jurisdictions to monitor in the preliminary due diligence phase.
• Observing the limits set by the relevant OECD guidance on taxation, and not having tax advantage as one of the principal objectives of any investment not engaging in harmful or aggressive tax planning.

B) Agreement terms and conditions, which include representations and warranties on tax structures and reporting, transparency to tax authorities and Goodwell, and assistance in developing corporate responsibility. This way we endeavor to have portfolio companies comply with tax regulations.

C) Monitoring and reporting, which involves encouraging portfolio companies to prepare their own tax policy, annual reporting of taxes and tax-like fees paid, publication of tax footprint on a country-by-country basis, promoting responsible tax practices and transparency in investees, and following international tax regulations and updating policies as needed. It also involves periodically updating our investors on potential adverse tax risks on investment returns.

Investment Advisory Fees in Mauritius

• Fiji
• Guam
• Marshall Islands
• Palau
• Panama
• Russia
• Samoa
• Trinidad and Tobago
• Turks and Caicos Islands
• US Virgin Islands
• VanuatuGoodwell Responsible Taxation Policy – 2023

In line with our above principles, our Investment Advisory structure is taxed in line with OECD guidelines on profits in Mauritius.

This policy applies to all investment entities managed, or advised by Goodwell Investments B.V.

Review

This policy will be reviewed annually by Goodwell Investments B.V.

More Information

If you have further questions about this policy please email info@goodwell.nl