Tax policy
Basic Policy
Based on our corporate philosophy of "Inspire the world. Deliver joy every day.," all directors, officers and employees of the Group, both domestic and overseas, comply with laws, social norms and internal regulations, and act with a high sense of ethics, both public and private. In addition, we have established internal regulations and are working to maintain and improve compliance through awareness-raising for employees.
Tax policy
Our Group believes that it is necessary to appropriately return profits earned through business activities to various stakeholders. Among these, we recognize that tax payment is a fundamental and important social responsibility. We aim to ensure the transparency of tax affairs, to comply with tax laws and regulations in all countries where it does business, to pay taxes with an emphasis on fairness, to ensure responses to international tax compliance such as BEPS project, and to contribute to the economic and social development of all countries and regions in which it does business.
Governance Structure
Our group recognizes that the maintenance and improvement of governance, including taxation, contributes to the enhancement of corporate value, and strives to improve it. We have established a basic policy on the establishment of an internal control system, which has been resolved by the Board of Directors. The Director, Executive Vice President & CFO, who is the director in charge of the Finance and Accounting Division, is responsible for the status of the management of overall tax practices and the policy for responding to them. By securing and developing appropriate human resources, the Group has established a system that can improve the Group's tax payment compliance and appropriately fulfill tax risk reduction. The Board of Directors and the Audit and Supervisory Committee are also responsible for overseeing the formulation, revision, and compliance of the above policies. We regularly ask for advice from external advisors on examining tax risks. In particular, for overseas-related transactions, we established the following systems concerning transfer pricing taxation and tax haven countermeasures.
Transfer pricing taxation
For transactions with foreign affiliates, the Company complies with the laws and OECD Transfer Pricing Guidelines of each country and sets prices for transactions between group companies in accordance with the arm's length principle. In addition, we will develop documentation of pricing methods appropriately when it is obligatory to document the laws and regulations of each country and region, or when it is necessary due to transaction size, tax risks, etc.
Tax Haven Countermeasures
We do not engage in tax planning intended to avoid tax, such as the use of tax havens by enterprises without business objectives or entities. In cases where an investment is made in a tax-exempt country or a reduction in tax rates is implemented due to a revision of laws and regulations in the country or region in which we operate and assess whether or not tax haven countermeasures are applied in accordance with laws and regulations of each country. As a result, we properly file tax returns and pay taxes when it is subject to the tax haven countermeasure system.
Relationship with Tax Authorities
Our group will respond sincerely to tax authorities and build and maintain honest and good relationships with them. We endeavor to file proper tax returns by checking with tax authorities in advance if necessary, and are working to reduce tax risks. Issues pointed out in tax investigation shall be properly addressed and endeavored to be remedied, and information required under applicable laws and regulations shall be appropriately disclosed to the authorities to demonstrate transparency.
*Tax policy approved by the Board of Directors on November 18, 2022