ITO EN Group Tax Policy
The ITO EN Group complies with laws and regulations both in Japan and overseas and ensures the development and appropriate application of internal rules based on the Group management principle of "Always Putting the Customer First." The Group also seeks to comply with tax-related laws and regulations both in Japan and overseas and to properly file tax returns and pay taxes in accordance with legal requirements.
Furthermore, by ensuring tax transparency and reliably meeting its tax obligations in a timely and appropriate manner, the Group contributes to the development of all the countries and regional communities in which it operates.
1. Tax Compliance
We comply with the tax-related laws and regulations in all the countries and regions in which we operate as well as international initiatives such as the OECD BEPS project and we properly file tax returns and pay taxes in accordance with legal requirements.
2. Tax Governance
The General Director of Administration Headquarters at ITO EN assumes ultimate responsibility for the ITO EN Group's tax governance.
Tax business operations and tax risk management across the ITO EN Group as a whole are overseen by Finance & Accounting Department at ITO EN, which collaborates closely with relevant business units and Group companies to deal with the various tax-related issues which arise on a day-to-day basis.
3. Mitigation of Tax Risk
We recognize that tax business operations involve uncertainty and, as a result, tax risks may materialize. We fully investigate and consider any tax risks we become aware of and also seek the advice of experienced tax consultants and tax experts to minimize tax risk. We also take advantage of advance pricing agreements with tax authorities where necessary.
4. Tax Planning
We do not engage in tax evasion with business entities existing only on paper nor abusive tax planning schemes using tax havens. We endeavor to ensure that the basis of any tax planning schemes we use can be rationally explained.
5. Transfer Pricing
We comply with the OECD Transfer Pricing Guidelines and establish prices between group companies under the arm’s length principle. We analyze the functions performed, the assets used and the risks assumed by the parties to transactions and regularly evaluate whether profits are split appropriately according to the contribution of each party. We also prepare appropriate transfer pricing documentation in accordance with the tax laws and regulations of each country and region.
6. Utilization of Tax Breaks
In compliance with the tax laws and regulations of each country and region, we seek to keep our tax costs at a reasonable level through the appropriate application of tax breaks.
7. Relationship with Tax Authorities
We strive to build and maintain a good relationship with tax authorities by thoroughly maintaining a cooperative attitude. If a conflict of opinions arises with tax authorities, we endeavor to resolve the conflict through constructive dialogue.
8. Ensuring Transparency
We recognize that ensuring tax transparency is part of corporate social responsibility. Our approach to tax-related information and taxes is to ensure tax transparency through fair, timely and appropriate information disclosure.
9. Income taxes paid in Japan and overseas