Basic Policy on Tax Affairs
The SUNDRUG Group (hereinafter referred to as “the Group”) establishes a tax affairs policy that applies to the Company and its Group companies. The Group complies with relevant laws and regulations regarding tax affairs in accordance with the Group Action Guidelines, which have been formulated to practice compliance management based on a high standard of corporate ethics. The Group understands that paying taxes properly is a corporate social responsibility and helps us live up to the support and trust of all stakeholders. Based on the policy, the Group ensures development and management of business processes and procedures related to tax affairs practices to appropriately achieve governance related to tax laws.
1.Compliance with laws and regulations
The Group fulfills its corporate social responsibility by filing and paying taxes in an appropriate and timely manner in compliance with international taxation rules and laws and regulations regarding tax affairs. The basic concept is to contribute to the development of the community by paying taxes appropriately, and the Group does not conduct tax planning for the purpose of tax evasion.
2.Ensuring tax governance
The Group aims to enhance employees’ knowledge on tax affairs through training and education. By conducting appropriate and legal tax processing based on internal rules, the Group works to raise employees’ awareness of tax compliance and maintain a tax governance system.
3.Tax risk management
The Group positions tax risk as one of the important risks, and thus appropriately responds to tax reforms and other matters and continuously strives to minimize tax risk. Group companies properly conduct tax practices, such as tax filing, tax payment, and tax audits, in compliance with basic policies and guidelines of the Group. The Group thoroughly examines tax risk in business activities in advance and obtains preliminary confirmation from administrative authorities and advice and guidance from experts as necessary in an attempt to mitigate it.
4.Building relationships of trust with tax authorities
The Group maintains fair relationships with tax authorities and works to ensure transparency in tax affairs and build relationships of trust by responding to inquiries from tax authorities with timely and appropriate information and in a faithful manner. If there is a disagreement with the tax authorities, the Group works to solve issues by cooperating and reaching an accord with them.