Risk Management

Tax strategy – Oriel Resources Limited and subsidiary companies (“the Company”)

The Company is a subsidiary of Mechel PAO Group (“the Group”). Global turnover of the Group is more than €750 million, which means the Company forms a part of a MNE Group as defined within section 7 of Schedule 19 of the Finance Act 2016, and the Company is therefore required to publish its tax strategy for the current year ending 31 December 2017.

Corporate Governance
Overall Group tax strategy, the supporting governance framework and management of tax risks of the Group sits with the Group Head - PAO Mechel. Day-to-day responsibility for each of these areas sits with the Group companies’ directors.

Tax risk management
The Group presently operates in 24 countries and seeks to comply with tax legislation within all jurisdictions including the UK where the Company operates. The Group Head invites open dialog with the local Group companies on matters arising, including tax risks such as compliance and reporting risks.

Attitude of the Group towards tax planning (so far as affecting UK taxation)
Within the overall Group tax strategy, the Company undertakes tax planning as part of its overall business strategy. The Company does not practice aggressive tax planning the only purpose of which is obtaining a tax advantage.

The Company will obtain specialist external tax advice in situations where there is uncertainty in relation to taxation legislation within the UK or cross-border transactions.

Level of risk in relation to UK taxation that the Group is prepared to accept
The Group’s objective is to comply with applicable taxation requirements in all the jurisdictions in which the Group companies operate. The Company seeks to reduce the level of tax risk arising from its operations as far as this is reasonable and practicable as part of its internal control procedures and processes.

Approach towards dealings with HMRC
The Company maintains an open and transparent relationship with the tax authorities, including HMRC concerning all applicable matters. The Company discloses all relevant information to the tax authorities (HMRC) and files VAT and corporation income tax returns as required.