Tax Affairs
Basic approach
artience group One of the Sustainability Charters (revised in January 2024) is "thorough compliance," and we are striving to ensure thorough judgment and action based on high reason, conscience, and ethics, complying with the laws and regulations of domestic and overseas countries, as well as international treaties and local social norms. We have the same basic stance on taxation, and we will fulfill our corporate social responsibility by complying with the relevant laws and regulations of each country and paying taxes appropriately, while working to raise awareness through raising awareness among each and every employee based on our tax policy.
In addition, in the course of global business development, we will conduct overseas related party transactions in accordance with the OECD Transfer Pricing Guidelines, etc., on the premise of arm's length pricing, and will not engage in arbitrary tax avoidance such as tax havens.
The artience Group (hereinafter referred to as the “Group”) complies with the tax-related laws and regulations of the countries and regions in which it operates, fulfills its corporate social responsibility by paying taxes appropriately, and contributes to the development and sustainability of local communities.
The Group has established the following policy to ensure tax transparency and improve tax compliance.
- Tax compliance
In addition to complying with tax-related laws and regulations and tax treaties in the countries and regions in which it operates, the Group also understands the legislative intent and background of these laws, and files and pays taxes in an appropriate and timely manner. In addition, we provide appropriate education and training to Group officers and employees to ensure that tax compliance is instilled and established within the Group. - Tax planning
The Group considers and implements plans to improve cash flow, such as by utilizing preferential tax systems or tax incentives (tax benefits) that are effective in achieving its business objectives. However, we do not engage in excessive tax avoidance, such as applying preferential tax systems based on interpretations that deviate from the legislative intent of laws and regulations, or transferring profits to low-tax countries (tax havens.) - Tax governance
The Finance & Accounting Department of artience Co., Ltd. — with the officer in charge of finance as its chief officer — will work together with the finance departments of Group companies in Japan and overseas for the Group to create a system and environment that enables communication with the relevant departments of each company regarding tax matters. - Mitigation of tax risk
The Group will respond appropriately to changes in tax systems in the countries and regions in which it operates, and will work to reduce tax risks in resolving issues in a rational and transparent manner, such as obtaining expert advice for transactions with unclear tax interpretations, and in some cases making inquiries with tax authorities in advance. - Actions for compliance with the transfer pricing taxation
In transactions with overseas affiliates, the Group will appropriately distribute profits in accordance with the functions, assets, and risks of each Group company based on arm’s length pricing in accordance with the OECD Transfer Pricing Guidelines, and will work to maintain transfer pricing documents in accordance with the tax-related laws and regulations of each country or region. - Relationship with tax authorities
The Group will respond with integrity to requests from the tax authorities of the countries and regions in which it operates, and strive to build and maintain good, sound, trusting relationships. We will clarify the cause of any findings pointed out in tax audits, etc., and take appropriate corrective and improvement measures to prevent repeat occurrences.
Established on January 1, 2024 (Resolved at Board of Directors on December 8, 2023)
| 2021 | 2022 | 2023 | |
|---|---|---|---|
| Corporate taxes, etc. (consolidated) | 3,450 million yen | 2,968 million yen | 3,042 million yen |
tax governance
Under the direction of the chief financial officer, artience Co., Ltd. Finance & Accounting Department works with the accounting departments of each group company to build a tax governance system and work to reduce tax risks. Additionally, if tax issues arise, we will report them to Board of Directors, etc. as necessary, and take appropriate measures while seeking advice from external experts in a timely manner.
Relationship with tax authorities
We strive to maintain a healthy and good relationship with tax authorities, and provide sincere and fact-based explanations and responses in good faith. In response to findings and guidance, we investigate the causes, take appropriate corrective and improvement measures, and work to prevent recurrence.