Tax policies are approved by the Board of Directors, and the Financial Officer is responsible for tax execution. Important matters are reported to and supervised by the Board of Directors as necessary. Tax operations are carried out in cooperation between the company's accounting department and the accounting departments of Group companies. We regularly receive reports from group companies on the status of their business operations, including tax reporting and tax payments, and reports on their financial situation, including taxation, and other matters relating to the performance of their duties. We then provide them with guidance on their operations as appropriate to the case.
In order to ensure proper tax compliance, our groups follow international tax standards and guidelines published by international organisations such as the OECD and make timely and appropriate tax declarations and payments at each operating location in accordance with the tax laws and regulations of the country or region in which the company operates.
We are fully aware of the social significance of tax payment and recognise the importance of appropriate and effective tax planning for the achievement of business objectives. We are working to maximise consolidated cash flow by eliminating double taxation and making effective use of preferential taxation systems, while taking into account the intent of enacting laws, regulations and rules.
We conduct a thorough review of the tax risks of our business activities well in advance. Where necessary, we request advice and guidance from tax specialists.
Our Group deals appropriately with the tax authorities in each country in good faith and strives to build and maintain good relationships with them. In the event of differences of opinion with the authorities, they are dealt with and resolved in good faith.