Tax Policy

The success of Teck’s business depends on our ability to create value in a way that meets the needs of the company, our shareholders, communities and stakeholders, while accounting for the broader environmental, social and economic context in which we operate. Operating in accordance with Teck’s Code of Ethics and complying with both the spirit and letter of applicable local laws, including tax laws, is a fundamental part of our commitment to the communities in which we operate. This Tax Policy aligns our approach to tax matters with our approach to sustainability generally.

Taxes are a material cost of our business and the timely compliance with all tax obligations, the timely payment of all taxes and the accurate provision for tax in our financial statements are an important part of our obligations to stakeholders and to the communities in which we operate.

In all tax matters we are compliant, transparent, cooperative and ethical. We file all required tax returns and information slips on an accurate and timely basis. We pay our taxes on time and in full.

We respond openly and fully on a timely basis to all government requests for information pertaining to our legal structure, our financial results and our taxes in the course of their audits. We do not engage in tax planning that relies on the non-disclosure of activity or of ownership in tax havens or secrecy jurisdictions.

We actively engage with the tax authorities of the jurisdictions in which we operate. We seek to build open and trusting relationships with them, building on the common interest we have with the authorities in efficiently reaching a timely and accurate determination of our financial responsibilities for taxes. Disputes, when they occur, are resolved through statutory processes based on full disclosure and legal principles. Where possible, we will reach an agreed statement of relevant facts.

We monitor tax planning to ensure it does not create inappropriate financial risk and is consistent with our commitment to communities. We undertake tax planning in accordance with the commercial substance of our business activities. We undertake tax planning in full compliance with applicable laws and tax policy in relation to matters that arise in the ordinary course of our business. We seek to comply with both the letter and intent of the relevant laws. We pay tax where value is created in the normal course of our business.

The tax consequences of material transactions are the subject of written analysis supported, where appropriate, by written external opinions and/or local government authority advance tax rulings. We value certainty and compliance in our tax affairs and seek to minimize the financial and reputational risk associated with our tax affairs.

Material transfers of goods and services between Teck and its subsidiaries are effected at arm’s length prices and on arm’s length terms in accordance with the substance of the commercial transaction and in compliance with international transfer pricing standards such as the Organization for Economic Co-operation and Development (OECD) guidelines. Contemporary documentation is prepared and made available to the tax authorities on request.

We have a limited presence in off-shore financial centers. Our activities in any such jurisdictions are fully disclosed to all relevant tax authorities in accordance with applicable law, are conducted on arm’s length terms in accordance with applicable transfer pricing rules, are related to the ordinary course and commercial substance of our business and are fully compliant with the tax laws and policy applicable in all relevant jurisdictions.

Where there is a clear, unambiguous and material error in a filed tax return, we will disclose the error to the relevant tax authority if the error is discovered before the completion of the relevant tax audit cycle.

We engage constructively in national and international dialogue with governments, business groups and civil society to support the development of effective tax systems, legislation and administration.

This Tax Policy is reviewed annually by the Vice President, Tax and presented annually to the Audit Committee of Teck’s Board. This Tax Policy is annually circulated to and reviewed by all members of the Tax Group at Teck. The Vice President, Tax, is responsible for ensuring compliance with this Tax Policy and reports regularly to the CFO and to the Audit Committee of Teck’s Board.