Exclusive Networks // Sustainability Report 2022

Ethics, fair practices, compliance and security Export control

6.6

Transparency and the fight against tax avoidance

This is due to the number and complexity of tax regulations, both local and international (including transfer pricing rules and principles governing the application of withholding taxes), and their interpretation in each country. In this global and complex environment, the Exclusive Networks Group aims to comply with all applicable tax rules and regulations in the countries where it operates, ensuring that the right amount of tax is paid in the jurisdictions where it generates profits and value. Consequently, Exclusive Networks strives to comply with local and international rules, including the “OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations”. Exclusive Networks handles tax issues with integrity and does not engage in any artificial tax schemes. Each of the Group’s foreign locations is intended to expand the Group’s business by providing a local presence where operational and commercial needs require it. [GRI 3-3-c] and proliferation of certain equipments. Export control compliance is therefore an important issue for the Group. The Group applies these controls in all the countries in which it operates, and more specifically:  in the European Union, in compliance with EU Regulation No. 821/2021 of 20 May 2021 establishing the Union regime for the control of exports, brokering, technical assistance, transit and transfers of Dual-use items;  in the United States, in accordance with the EAR – Export Control Regulations 15 CFR section 730 et seq ;  in Singapore or the United Kingdom, in accordance with applicable local regulations. As the export or re-export of certain equipments is subject to obtaining an export licence or an exemption granted by the authorities of the exporting countries, the Group is informed at all times by the vendors of restrictions on the goods and services supplied. Vendors have a dedicated organisation that enables them to exercise strict control over their manufacturing and sales processes in order to comply with these obligations.

Organisation of the tax function Exclusive Networks’ Tax Department is organised around a central team, integrated into the Group’s Finance Department, which relies on local finance teams and external advisors to ensure that the Group pays the taxes due in the jurisdictions where it operates and that the risks are identified, assessed and under control. The Tax Department is responsible for ensuring compliance with applicable local and international tax laws and regulations, minimising tax exposure by managing tax risk, limiting double taxation and taking advantage of any tax incentives or reliefs to which the Group may be entitled.

Compliance, transparency and fiscal responsibility

The Exclusive Networks Group has offices in 47 countries. Due to the global and cross-border nature of its distribution business and the complexity of the international tax environment, the Group faces tax uncertainties and risks inherent to its business.

6.7

Export control

As an international company and given the nature of the goods and services it markets (see description of the risk in Chapter 2.1), the Exclusive Networks Group implements all necessary measures to comply with applicable laws and regulations concerning:  export control of Dual-use items and technologies;  trade restriction measures against certain countries subject to sanctions or embargoes, decided by the United Nations Security Council, the United States via the Office of Foreign Assets Control (OFAC), or the European Union within the framework of foreign and security policy decisions (CFSP). Given the nature of the products and solutions marketed, which are considered Dual-use because they incorporate encryption technology, the cybersecurity sector is sensitive and subject to these regulations and controls. The Exclusive Networks Group operates worldwide in compliance with these laws, which often have an extraterritorial scope, are cumulative and evolve regularly. Their objectives are to preserve global geopolitical balance, international, national or regional security, and to fight against the diversion

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Exclusive Networks

Sustainability Report 2022

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