ANNUAL REPORT 2008 - Gorenje Group

62
2008
Tax risks are associated with potential changes in tax legislation, its implementation in daily business
processes and provision of administrative conditions. The basic control measure is consistent
following of regulations of tax legislation, monitoring of tax and legal practice, establishment of
internal control mechanisms and intensive co-operation among the departments in the Group
companies (tax field, accounting, trade, informatics, logistics, etc.) With respect to the operation
with the subsidiaries having their registered offices aboard the risks are controlled by managing of
a co-ordinated transfer price policy. Uniform documentation for their evidence shall be prepared.
The management board of the Gorenje Group has assessed that the exposure to tax risks – due
to the complexity of operation, large scope of international transactions and potential changes
in the tax legislation – is large, but the probability of occurrence of risky events is low.