Appropriate Tax Initiatives
Japan Post Insurance believes that transparent tax management, including compliance with laws and regulations and proper tax payment, is important in fulfilling its corporate social responsibility, and pays taxes appropriately in accordance with the Japan Post Group Taxation Policy. In addition, we are striving to enhance our corporate governance regarding tax and to raise awareness of tax compliance through education and training programs.
Basic Policy on Taxation at the Japan Post Group (Japan Post Group Taxation Policy)
- 1.
- Basic Approach
- The Group recognizes that paying taxes is part of corporate social responsibility, and will contribute to the development of a sustainable society in the countries and regions in which it operations through proper tax payments.
- The Group will observe taxation law and other laws and regulations in the countries and regions in which it operates, while understanding and appropriately responding to the importance of international initiatives as typified by the BEPS Project operated by the OECD.
- The Group will conduct training and other internal awareness-raising activities to ensure that each employee recognizes that observing taxation compliance mitigates taxation risks and is the best strategy for enhancing corporate value.
- The Group carries out taxation work under the Group CFO, as well as the executive officer in charge of accounting and finance, who is responsible for administrative work related to corporate accounting. Important taxation matters for the Group such as the results of tax investigations are reported to the Management Meeting and other meeting bodies as needed by the Group CFO or the executive officer in charge of accounting and finance. Financial statements, including tax expenses, etc., are approved by the Board of Directors and disclosed appropriate in Annual Report.
- The Policy applies to the entire Group, including Japan Post Co., Ltd., Japan Post Bank Co., Ltd., Japan Post Insurance Co., Ltd. and Toll Holdings Limited, which operates international logistics businesses. The holding company Japan Post Holdings Co., Ltd. will coordinate with Group companies while endeavoring to carry out taxation work in a stable fashion.
- 2.
- Implementing Proper Tax Payments and Ensuring Taxation Transparency
- The Group will strive to mitigate taxation risks and optimize tax expenses, while making every effort to enhance corporate value and maximize shareholder value. Moreover, the Group will not engage in tax reduction efforts through interpretations or applications that deviate from the spirit of laws or regulations, in using tax structures without commercial substance, or in tax planning for the sole purpose of tax avoidance.
- The Group will not engage in arbitrary tax avoidance by utilizing countries or regions with zero taxes or low tax rates (so-called tax havens) or similar arrangements. In the event that investments are made in tax havens for business reasons, the Group will follow the tax haven countermeasures established by each country and make proper tax payments.
- For the trading prices applied to the Group's overseas-related transactions, in accordance with the taxation laws in the countries and regions in which the Group operates, and guidelines on transfer pricing published by international organizations such as the OECD, the Group will endeavor to distribute income appropriate to each country by setting prices based on arm's length pricing. In addition, the Group will observe obligations to submit or preserve transfer pricing documents and appropriately document the information in accordance with taxation law and other requirements.
- In cases such as when advanced and multi-faceted considerations of taxation or accurate interpretations of taxation law are required, the Group may seek advice from outside experts such as tax accountants and tax consultants, and will endeavor to reduce taxation risks by utilizing advance consultations with taxation authorities.
- 3.
- Mutual Trust with Taxation Authorities
- The Group will give sincere and factual explanations to taxation authorities and do its utmost to build a relationship of trust with taxation authorizes by dealing with them in good faith.
- When there are differences of opinion with taxation authorities, the Group will strive to resolve them through proactive and constructive dialogue. Additionally, the Group will implement appropriate corrective action and improvement measures and strive to prevent repeat occurrences in response to issues pointed out by taxation authorities, except when filing objections to taxation authorities' actions or opinions.
Breakdown of tax payments by region
Our business is conducted only in Japan, and corporate taxes are paid only in Japan.
