Vanuit Willebroek organiseert Mazda de Europese financiële transacties van de Japanse autoconstructeur. CFO Christine Plasmans vertelt hoe ze erin slaagde het systeem van verrekenprijzen te laten erkennen door de lokale fiscale instanties in heel Europa. Mazda heeft daarbij transparantie en substantie hoog in het vaandel en verwacht dan ook geen grote problemen met de nieuwe eisen die de OESO voorstelt.

1. Mazda Motor Logistics Europe – Willebroek
FD SEMINAR 18/06/2015
1
Christine Plasmans
CFO

2. OUR PRODUCTS:
2
 CARS : 90% of turnover!
 6 carlines
 Spare parts (service & warranty) and Accessories

3. CX-5
3

4. Mazda 6
4
Stylish, insightful & spirited

5. Mazda 3
5

6. Mazda 2
6
Stylish, insightful & spirited

7. MX-5 Roadster Coupe
7

8. CX-3
8

9. MC
Japan
Central entrepreneur
Non-
Europe
Europe
MIC
Japan
Trading Company
MME
Germany
European HQ
MLE
Belgium
European Logistics &
Distribution Centre
NSCs
Local countries
Local Distribution
Third Party
Manufacturer P&A
Independent
Distributors
(minority)
Retailers
Retailers
Vehicles
and
P&A
Vehicles
and
P&A
Vehicles
and
P&A
Vehicles
and
P&A
ServicesSupply vehicles
Supply P&A
(Parts &
Accessories)
Supply
vehicles
EUROPEAN BUSINESS MODEL

10. EUROPEAN LEGAL STRUCTURE

11. NSC’swithTP
MMR: noTP
NSCTPMETHODOLOGY
GEOGRAPHICAL SCOPE
ES
IE
UK
PT
FR
BE
NL
DK
DE
RU
IT
CH
AU
SI HR
PL
CZ
SK
HU
TR
NO
SE
One TP methodology to meet 21 local legislations

12. 12
MAZDA’S EUROPEAN TP POLICY
KEY CHARACTERISTICS
MMC
Japan
Independent
Distributors
(minority)
NSCs Retailers
Retailers
MIC
Japan
Resale Price Minus
based transfer price
Resale Price Minus
based transfer price
Resale Price Minus
based transfer price
Resale price
Cost-Plus based
gross profit margin
for aggregate of functions
Costs+Z%
(Agreed with TP tax inspector)
(Berry ratio)
Gross profit margin:
NSC Costs + X-Y % *
Belgium
MLE
Costs based
gross profit margin
Entrepreneur
Residual Income
(*) Note:
- Profit mark-up calculated on value added costs only
- No mark-up on disbursements

13. 13
MAZDA’S EUROPEAN TP POLICY
Allocation of roles
Company Functions
MC (Japan)  Manufacturer of vehicles and spare parts (all risk taker)
MIC (Japan)  Trading company
MLE
Belgium
Core:
 European distribution and logistic services
– Takes title to goods / Low risk
Subordinated:
 European intragroup shared services, subordinated but ancillary to logistic
activities
– Finance, accounting, treasury and administration support for NSCs
– Information Systems support
– Customs clearance services
– Group cost consolidation point for locally/contract manufactured products
 Shareholding (no management involvement)
 Branches (no management involvement / functionally separate enterprises)
MME (Germany)  European Headquarter
– Financial strategy
– Sales & Marketing support
– Customer Services
– Public Relations
– Human Resources support
– Legal support
 European Research & development
NSCs
Various countries
 Local distribution and sales
– Local sales, marketing and branding support
– Coordination and supervision of retailer network

14. NSCin scope
NSCexcluded fromthescope
TRANSFERPRICINGDOCUMENTATION
GEOGRAPHICALSCOPE
ES
IE
UK
PT
FR
BE
NL
DK
DE
RU
IT
CH
AU
SI HR
PL
CZ
SK
HU
TR
NO
SE
One TP methodology but 21 local documentation sets (meet local
requirements) based upon master file prepared centrally!

15. 15
TRANSFER PRICING DOCUMENTATION
COUNTRY SEGMENTATION
Low risk
countries
Moderate
risk
countries
High risk
countries
Level of documentation
required
Country transfer pricing
risk
Country importance of the
intercompany transactions
=> Step approach – Different levels of documentation.

16. 16
TRANSFER PRICING DOCUMENTATION
RISK ASSESSMENT
Factors considered in the country risk analysis :
Timing of transfer pricing documentation
Penalties associated with insufficient information
Level of documentation requirements (content/form) in that
country
Requirements for local benchmarking
Level of sophistication of local tax authorities
Time limits upon request to submit documentation set
Materiality of the NSC (multiplicator)

17. 17
TRANSFER PRICING DOCUMENTATION
Internal RISK ASSESSMENT
Countries TP Risk Materiality Overall assessment
Croatia Low Low Low
Czech Republic Moderate Low Low
Ireland Low Low Low
Hungary High Low Low
Netherlands Moderate Low Low
Norway Moderate Low Low
Portugal High Low Low
Poland High Low Low
Slovenia High Low Low
Slovak Republic Moderate Low Low
Sweden Moderate Low Low
Switzerland Low Moderate Low
Turkey Moderate Low Low
Austria Low High Moderate
Belgium Moderate Moderate Moderate
Denmark Moderate Moderate Moderate
France Moderate Moderate Moderate
Germany Moderate High High
Italy Moderate High High
Spain Moderate High High
United Kingdom High High High

18. 18
STATUS ON MAZDA’S EUROPEAN TP POLICY
BENCHMARK ANALYSIS - APPROACH
Regular update in line with OECD guidelines (by PWC)
Pan-European applicability of results (country scope)
5 year period (2009-2013)
According to German criteria (that are considered the strictest):
Rejection of non-independent companies (select A+ A A-)
Rejection on the basis of consolidated accounts
Rejection of inactive companies
Working capital adjustments
Sufficient data sets (3 years)
Excluding loss making companies (cumulative 5years loss)
Manual exclusions and validation through web search (activity)

19. 19
MAZDA’S EUROPEAN TP POLICY
 Country-by-country reporting: filed in home country –
Japan
 Transparent and common chart of account/ way of
accounting.
 Documentation set: master file – local file
 Substance of entity  taxable result
 Anticipate what tax auditors expect

20. 20
MAZDA’S EUROPEAN TP POLICY