GPSC Group Tax Policy
Group Policy:1. Tax Planning and Compliance
- Manage the tax management in order to optimise the benefits of its stakeholders by complying with all applicable laws and regulations, aligning tax planning, including, tax operation with the group, maintaining the good reputation of the group and keeping the good relationship with related governmental taxation agencies and authorities.
- The transactions between related parties are based on Arm’s Length principle to ensure that the taxes are fairly paid with respect to our function performed and our business strategies.
- Consider tax impact for investments and new transactions by designated party responsible for tax to ensure that the transactions and structure are done according to commercial activities and align with business strategies and adherence with prevailing tax legislation. For the benefit of stakeholders, the group will consider tax incentives/exemptions available for the commercial activities.
- Consider tax risks to ensure that tax risks are identified, managed and reported to the management and our tax positions are supported by relevant laws.
- Appoint person(s) responsible for general tax matters and coordinate with the governmental taxation agencies to ensure that all relevant information will be timely submitted governing authorities and enhancing transparency of our tax affair.
- Consider hiring a highly experienced tax consultant prior to commence a new or complex transaction to ensure that all taxation risks are mitigated and complied with laws and regulations.
Management of contractors & suppliers
Supplier pre-qualification is implemented to ensure the supplier efficiency and capacity in the handling of products and services which meet the company’s needs. The scope of supplier assessment covers the quality complying with the company’s pre-qualification criteria based on the questionnaire. This is to select the qualified suppliers and meet the needs of Supplier Selection Committee. GPSC will record the data obtained from supplier assessment form. When suppliers’ names are approved, the procurement personnel in the company will record suppliers’ names in the Approval Vendor List (AVL) in the SAP System which is a supplier database management system elected by the company.
AVL procedure is in the progress of development aimed for qualified and standardized AVL system, complying with human rights, transparency in operations and criteria on community and environmental impacts. The AVL is specified in the Term of Reference (TOR) for procurement during collaborative operation between supplier and the company. Supplier must acknowledge on AVL and implement operation according to an agreement and standards. The supplier pre-qualification supports the company to operate business with supplier that has good quality and governance.
In order to assess the performance of supplier, the company has conducted regulations on measuring supplier performance. Results from supplier assessment are used in continual development in aspects, such as product quality, service and cooperation with the company. The assessment will be implemented with suppliers approved in the company’s AVL list, These suppliers can deliver products or services to the company within the duration of supplier assessment.
Supplier assessment will be implemented by user or procurement personnel. Assessment will be made in many aspects, such as product handling, product quality, safety, coordination, provision and accuracy. The users and procurement personnel will collaboratively assess in every operation. Assessment results will be reported to suppliers after approval is made by procurement manager and they will be improved and used in the operational development with suppliers. Collaborative operations will be improved to create continual efficiency to prevent potential impacts on the company’s operations. In case that the results from the supplier assessment do not comply with the company’s criteria, the company will clarify mistakes to supplier and allow the supplier to prepare the improvement plan and submit to the company. In case that supplier has been assessed as low level in the business unit for the second consecutive year, GPSC will remove that supplier from the AVL.
Management of Contractor
Supplier contract management has objectives to control and manage Supplier contract with efficiency, complying with the company’s criteria which covers the procurement of projects
Team Set-Up and Mobilization
This step comprises the setting up of team that is responsible for contract, can identify responsibilities, create goals, outcomes, indicators of main operations, monitoring frequency, risk registration, internal and external meeting, preparation in advance such as site auditing, document verification and work permit.
This step is implemented to control and monitor results according to set up indicators, as well as improve results when they are below indicators. Monitoring will be conducted continually. In this step, things that do not comply with the contract can be managed or changed. The amendment will be specified in the contract on the management of contract violation and grievance management during the project implementation and service receiving of the company.
Closed Out and Feedback
This is a final step in the summarizing of contractor’s operation conducted by the assessment of work efficiency and summarizing learning issues and identifying guidelines on the improvement of the contractor's operational procedure. The company can use results from the efficiency assessment to improve and manage supplier contract for the procurement of projects and services.
Supplier Relationship Management
GPSC has determined regulations on supplier relationship management in order to improve relationship between suppliers and enhance work efficiency of supplier, covering the aspects of equipment and material procurement for work, office material procurement, service, subcontract work, maintenance task, calibration task, analysis including the project procurement and safety equipment & medicine procurement.GPSC has categorized the relationship of suppliers into 3 types as below.
- Strategic Suppliers
- Key suppliers
- Managed Suppliers
Relationship with supplier is determined to create clear objectives. Supplier relationship can be divided into 2 types, include category management plan procedure and spending analysis by suppliers, comprising 5 dimensions: supplier, spending value, impact, relationship, and supplier relation identification.
The performance management comprises the determination and management of supplier and measuring supplier performance conducted once a year. It aims for suppliers to propose guidelines, grievances and suggestions to the company and the company will improve the procurement procedure. This leads to smooth operations with suppliers and sustainability in the operations of both parties.
In 2016, GPSC has added the Way of Conduct (WoC) into management frameworks to align with PTT Group in the same direction according to the policy on material procurement: green procurement, material procurement, considering quality, price, number, service and speed. Efficiency and effectiveness are more emphasized along with CSR and environment.
GPSC highly focuses on the business operation with clients. The company has been conducting client satisfaction surveys 2 times a year since 2011, implemented by third party. Therefore, clients can provide their actual opinions toward the company, resulting in the transparent and impartial outcomes from the client satisfaction survey. Results from the survey will be reported in the Management Committee meeting with CEO presided over the meeting. A report on the materiality required problem solving must be made at each time. Plan on the grievance solving for issues/ recommendations from clients toward the products and services must be proposed to relevant agencies in order to solve problems immediately. Results from the problem solving will be monitored continually in the Management Committee meeting and results from client satisfaction survey will be monitored in the next 6 months. Results from the client satisfaction survey are considered as a part of client relations management planning for the next year.
The company emphasizes on the continual relationship with clients. Therefore, the company has arranged activities in collaboration with all clients and the company’s relevant business units, such as the Operational Department and Production Planning Department.Activities can be divided by timeframe as below.
- Monthly activities: Meetings will be arranged at the clients’ business units every last Wednesday of the month in order to conduct selling and production plans according to the client needs in a short term.
- Quarterly activities: The company will arrange recreational activities to disseminate knowledge to employees at all levels for client’s companies.
- Annual activities: Activities are conducted to focus on a study visit in relevant/continual business units of the company in order to exchange opinions on opportunities in the extension of collaborative business operations.