We consider ensuring the transparency of tax payments to be an essential part of the social responsibilities to be fulfilled by good corporate citizens. Furthermore, due to the globalization of our business, we are likely to face a growing need to handle a more diverse range of increasingly complex tax-related operations. Accordingly, we recognize that the coordinated handling of tax compliance is a matter of increasing importance.
With this in mind, we have appointed a Director who serves as CFO and a Managing Executive Officer to be responsible for tax governance across the Group, and established the Group Basic Tax Policy, outlined below, in addition to the Group Tax Regulations, the Group Tax Practices Guide and other relevant rules that provide specific operational guidelines. In these ways, we are striving to fulfill our corporate social responsibilities by paying taxes in a proper and fair manner in conformity with all applicable tax laws enforced in countries where we operate while maintaining appropriate information disclosure to enhance the transparency of our tax payment.
The Finance & Accounting Department serves as the primary business unit responsible for tax-related operations. In accordance with the “Group Tax Regulations,” this department is charged with furnishing information and advice to each Idemitsu department as well as Group subsidiary and affiliate handling transactions. The Finance & Accounting Department is also tasked with providing relevant in-house education and responding to tax inspections in addition to planning and implementing necessary countermeasures aimed at ensuring tax compliance and optimizing the management of tax expenses. Moreover, all Idemitsu Group employees are obliged to comply with the aforementioned regulations and handle tax-related operations in an appropriate manner. To this end, whenever requested by the Finance & Accounting Department, Group employees report on said operations and submit relevant documents while asking it to provide prior consultation where necessary.
We cooperate with tax authorities in a straight-forward, appropriate manner and prohibit our employees from making any inappropriate responses involving falsification or concealment. We endeavor to explain our group’s position and standpoint to the best of our ability in order to ensure the comprehension of tax authorities when they inquire about or point out issues pertaining to our handling of tax-related operations. Moreover, we utilize the advance inquiry procedures offered by tax authorities to ensure the appropriate payment of taxes. By voluntarily disclosing information to tax authorities, we thus strive to prevent the occurrence of and minimize the risk of tax-related incidents.
Should a tax-related compliance violation occur, we will take a stringent approach to its correction. We will also ensure that measures to prevent recurrences are implemented in accordance with in-house rules and regulations stipulated by the Idemitsu Group.