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Tax Governance Policy
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Introduction

Horizon Singapore Terminals Private Limited (“HSTPL”) is primarily involved in the operation of oil terminals, storage and transmission of oil and petrochemical products – an active business founded on sound economic fundamentals.

The Tax Governance Policy, approved by the Board of Directors, sets out the Company’s approach to managing tax affairs and commitment to complying with applicable tax laws and regulations. This policy is reviewed yearly by the management; and any amendment is approved by the Board of Directors.


3 Key Pillars


1. Compliance with Tax Laws

We are committed to principles of integrity, transparency and compliance with tax laws and regulations.

  1. Strong governance practices are established to ensure the highest ethical standards are maintained in conducting business activities
  2. HSTPL adopts a proactive approach to keep abreast of changes in tax laws and regulations; and implements appropriate measures to manage relevant changes.
  3. There are internal controls and procedures to ensure compliance with tax laws and regulations, including guidelines on cross-border transactions and transfer pricing: for example, arm’s length principle when transacting with related parties.

2. Governance Structure for Managing Tax Risks

The Board of Directors is responsible for overseeing the tax governance framework which is aligned with best practice in IRAS’ Tax Governance Framework.

  1. The management team is responsible for devising and maintaining a system of internal controls and processes which includes the judicious management of tax risks and reporting to the Board on tax governance matters.
  2. Our tax risk management is grounded in ethics and prudence; and alertness to and resolution of tax issues that are complex/ significant/ unfamiliar: such as changes in business environment; and changes in tax laws. Tax evasion is totally unacceptable.
  3. Tax risks are reviewed on an ongoing basis; and professional advice sought on complex tax issues. Key tax risks and matters are reported to the Board of Directors for decision-making.
  4. HSTPL’s tax governance is underpinned by 10 guiding principles as follows:
    • Board and management oversight
    • Compliance with tax regulations
    • Ethics and prudence
    • Alertness to and resolution of tax issues
    • Timely professional advice
    • Proper accounting of transactions
    • Due care and diligence in tax reporting
    • Timely tax filing and payment
    • Related party transactions at arm’s length
    • Commitment to continuous learning and improvement
  5. The tax governance framework, including internal controls and processes, is reviewed yearly; and updated to fit business and legislative changes.
  6. Qualified tax professionals are engaged to make corporate income tax returns. This is followed by timely tax filing and payment of tax due.


3. Relationship with Tax Authorities

We are committed to IRAS’ Tax Governance Framework – aimed to attain and maintain good standards of tax governance; and to support a collaborative and trusting relationship between HSTPL and IRAS.

  1. We are also committed to IRAS’ Assisted Compliance Assurance Programme (“ACAP”) by establishing good tax infrastructure to ensure GST compliance on an ongoing basis.
  2. HSTPL aims for tax certainty and correctness; and to adopt the correct tax treatment right from the beginning. For key tax risks, written advice is sought from qualified tax professionals – including engaging IRAS for advance clearance or tax ruling.
  3. In respect of tax enquiries or audits, HSTPL engages IRAS diligently to provide accurate and complete information to facilitate timely resolution of matters under review.
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