Group Tax Policy
ShareBasic Policy
The UACJ Group complies with the tax laws and regulations of the countries and regions in which it operates, and files tax returns and pays taxes appropriately. By upholding this fundamental stance and fulfilling our responsibilities to society, we pursue sound management and enhanced corporate value over the medium to long term.
Tax Compliance
We thoroughly understand and strictly comply with tax laws of the countries and regions in which we operate, the relevant circulars issued thereunder, and international tax frameworks such as the OECD's BEPS Project. We do not make use of tax havens or similar means that lack business substance and are intended solely to reduce our tax burden, nor do we engage in deliberate tax avoidance arrangement.
Tax Governance
To maintain transparency and soundness in our tax affairs, we build and operate a global management framework with appropriate checks and balances. For tax treatment at our domestic and overseas operations, we establish and maintain a framework under which the supervising department at headquarters carries out regular monitoring and related activities. We also ensure that material matters are promptly shared with senior management and addressed swiftly under the appropriate oversight of the Board of Directors.
Tax Planning
We ensure a proper understanding of the tax systems and incentives available in each country and apply them reasonably within the scope of our ordinary business activities, thereby striving to maintain an appropriate level of tax burden (optimizing our tax costs). In doing so, we contribute to maximizing the cash flow generated by our business activities and shareholder value over the medium to long term.
Tax Risk (Transfer Pricing)
We apply the arm's length principle to intragroup transactions and allocate profits appropriately according to the functions performed and the risks assumed by each group company. In managing tax risks, we work to prevent issues before they arise (proactive measures) by making use of advance pricing arrangements (APAs) and by conducting risk assessments in advance. Should issues such as double taxation arise, we seek to resolve them promptly (reactive measures) through the Mutual Agreement Procedure (MAP) and other available mechanisms.
Relationship with Tax Authorities
We provide timely and appropriate information to the tax authorities of the countries and regions in which we operate in response to their requests, and we maintain cooperative relationships grounded in integrity and a high degree of transparency. Where a difference of interpretation arises or an issue is identified in a tax audit or similar proceeding, we engage in dialogue in good faith and take appropriate corrective and improvement measures to prevent recurrence.