Generali Group

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          Taxes

          Generali contributes significantly to the development and financial stability of the countries where it operates, covering a key role in a period where governments pursue the balance between growth and welfare.

          The Group’s Italian and foreign companies pay income tax based on the rates and taxation rules set by the laws of each country.

          Income taxes
          (€ million)
          31/12/2018 31/12/2017
          Income taxes 1,258 858
          Deferred taxes -132 289
          Total taxes of the period 1,126 1,147
          Income taxes on discontinued operations 223 65
          Total income taxes 1,348 1,212

          The tax rate was 32.6%, in line with the previous year (32.7% at 31 December 2017). In absolute terms, the lower impact of taxation is due to a slight decrease of the earnings before taxes, compared to the previous year.

          Since 2016, a tax control framework has been implemented for detecting, measuring, managing and controlling tax risks at the parent company level. The framework is not yet mandatory for Italians operators and is part of OECD’s (Organisation for Economic Co-operation and Development) cooperative compliance. Its aim is to ensure the correct identification and appropriate control of tax risks through an approach based on an analysis that cuts across various corporate processes, in order to prevent or mitigate the risk of breaching tax regulations.

          The framework includes five phases:

          • tax audit to identify relevant corporate processes for risk control purposes and relevant regulations for risk management purposes
          • mapping of existing tax processes with related risks
          • analysis of the tax compliance of the processes
          • analysis of the adequacy of the processes
          • definition and implementation of corrective measures as a result of any shortcomings found in the two previous phases.

          As required by local regulations, in 2017 the London branch adopted a tax strategy aimed at respecting local tax obligations and developing a relationship with the Inland Revenue based on the principles of collaboration and transparency.

          As institutional investors, we contribute to the development and financial stability of the countries through investment in government bonds of around € 159 billion, representing 32.6% of our total assets under management. We also support the development of the real economy, including through investment in corporate bonds (non-banking) of around € 69 billion.