Sustainability InitiativesProper Tax Reporting and Payment
The Board of Directors has established the Kanto Denka Kogyo Group Tax Policy.
The Group will comply with the principles of this policy and strive to file and pay taxes appropriately.
Kanto Denka Kogyo Group Tax Policy
Kanto Denka Kogyo Group recognizes that it is one of the most fundamental and important social responsibilities of a company to properly fulfill its tax obligations based on the tax laws of the countries and regions in which it operates, and contributes to the development of society by complying with the following principles and paying appropriate taxes.
1.Compliance with laws and regulations
Kanto Denka Kogyo Group complies with the tax laws and related regulations applicable to the countries and regions in which we operate.
We will also conduct our business activities in compliance with the taxation standards published by international organizations such as the OECD, and will file and pay taxes in appropriate amounts.
Kanto Denka Kogyo Group will seek advice from outside experts as necessary, and will conduct fair and appropriate tax planning with full consideration of the legislative intent of tax laws.
In addition, the Group does not apply preferential tax treatment based on interpretations that deviate from the legislative intent of laws and regulations, intentional tax avoidance that is not in line with business objectives, or abusive tax planning that takes advantage of lightly taxed countries.
In addition, the Group does not engage in tax avoidance activities using tax havens or tax planning that does not match the actual business situation.
3.Appropriate response to transfer pricing taxation
In conducting transactions with foreign affiliates, Kanto Denka Kogyo Group complies with the OECD Transfer Pricing Guidelines and other relevant international regulations, applies transfer pricing methods based on functional risk analysis, and sets the prices of transactions with foreign affiliates based on arm's length principles in order to ensure appropriate tax payments in each country and region.
The Group does not arbitrarily transfer the value created by the Group to other countries or regions with lower tax rates.
4.Relationship with tax authorities
The Kanto Denka Kogyo Group performs appropriate tax reporting and tax payment in each country and region, and responds to inquiries and requests from tax authorities in a sincere and timely manner.
In addition, in order to reduce uncertainties associated with taxation and ensure tax transparency, the Group will strive to file tax returns and pay taxes appropriately by performing tax procedures that allow for reasonable explanations and by making appropriate use of advance inquiries and other systems to avoid differences in opinion with tax authorities in each country.
In addition, for items for which the Group have received guidance from tax authorities in the past, it will take measures to prevent recurrence.
5.Scope of application
This policy is applied to the transactions conducted by Kanto Denka Kogyo Group.