The Nihon Kohden Group has established the Nihon Kohden Charter of Conduct which states that we shall comply with domestic and foreign laws, regulations, and social norms, and conduct fair and lawful corporate activities to realize our Management Philosophy. In tax matters, we also contribute to society by complying with tax laws and regulations and paying tax appropriately, and strive to continuously increase our corporate value.
The Nihon Kohden Group complies with the tax laws and regulations of each country and region, as well as international tax rules such as the OECD’s BEPS project, and we file and pay taxes appropriately.
The Nihon Kohden Group promotes awareness of tax compliance thorough the development of internal company rules and employee education to establish and maintain a tax compliance system. The Finance Department of the Headquarters manages the tax affairs of the entire Nihon Kohden Group in collaboration with related departments and group companies. The Finance Department reports the status of tax management to the Management Council and strives to manage group-wide tax risks.
The Nihon Kohden Group sets transaction prices between related parties in accordance with arm's length principles, taking into account function and risk. We prepare transfer pricing documentation in compliance with the laws and regulations of each country and region.
The Nihon Kohden Group strives to enhance our corporate value by utilizing preferential tax treatment to the extent allowed by laws and regulations. We do not engage in intentional tax avoidance without actual business operations, such as transfer of profits to tax havens.
The Nihon Kohden Group recognizes that tax operations involve uncertainties due to differences in interpretation of laws or regulations. We manage tax risks through internal investigations and reviews, as well as by seeking advice from external experts and, if necessary, using bilateral advance pricing agreements or mutual agreement procedures with the tax authorities.
The Nihon Kohden Group aims to maintain sound and positive relationships with tax authorities in each country and region by responding to inquiries in good faith. In cases where a difference of opinion arises, we communicate constructively with the relevant authorities to resolve the issue.