Modern Dairy Tax Policy

Modern Dairy is committed to conducting its business in a responsible and ethical manner, including its approach to tax. This Tax Policy outlines the Company’s commitment to tax compliance and transparency.

1. Compliance with Tax Laws and Regulations

The Company is committed to full compliance with the tax laws and regulations in all jurisdictions in which it operates. This commitment extends beyond mere technical compliance and includes acting in accordance with the spirit and intent of the law. The Company will maintain accurate and timely records to ensure proper tax reporting and payment.

2. Transfer Pricing

The Company will conduct its intercompany transactions in accordance with the arm’s length principle. This means that prices charged between related entities will be set as if the parties were independent, unrelated businesses. The Company will document its transfer prices and practices to demonstrate compliance with this principle.

3. Substance Over Form

The Company will not engage in tax planning or structuring that lacks commercial substance. All transactions will have a valid business purpose and will be conducted on arm’s length terms. The Company will not utilize artificial or contrived arrangements solely for tax avoidance purposes.

4. Scientific and transparent tax structure

The Company’s tax structures and arrangements will be transparent and justifiable based on legitimate business reasons.

5. Transparency and Disclosure

The Company is committed to transparency in its tax affairs. The Company will disclose its tax policies and practices to relevant stakeholders, including investors, regulators, and the public. The Company will also report its tax payments and effective tax rate in its annual financial statements.

6. Continuous Improvement

The Company is committed to continuous improvement in its tax practices. The Company will regularly review its tax policies and procedures to ensure they remain effective and aligned with best practices. The Company will also seek external advice where necessary to ensure compliance with evolving tax laws and regulations.