Basic Policy
To ensure compliance with tax laws and appropriate payment of taxes as a social responsibility, the Shimadzu Group has specified basic rules for taxes in the Group Accounting Management Regulation as common corporate norms that should be practiced by all organizations within the Group.
1. Principle of Paying Taxes
- The Shimadzu Group shall complete appropriate factual and lawful tax filing and payment procedures by the prescribed deadlines in compliance with the applicable tax laws of the respective countries and based on an understanding of the intent of those laws.
2. Responsibility of Paying Taxes
- The Chief Financial Officer (CFO) shall coordinate the tax responsibilities of the Shimadzu Group, with corresponding operations implemented by the Head Office and tax departments at the respective Group companies.
- Any tax-related issues that arise in daily business operations shall be resolved promptly and appropriately by tax departments in cooperation with the applicable business department or Group company. Significant tax issues shall be reported to the Board of Directors.
3. Reduction of Tax Risks
- Given the increasingly globalizing business conditions, we work closely with the respective business units and Group companies to implement measures necessary for minimizing unforeseen tax burdens and changes required by tax authorities.
- When engaging in transactions for which the tax treatment is unclear, we try to reduce tax risks by consulting external tax experts or tax authorities as needed.
4. Tax Planning
- The Shimadzu Group shall not engage in transactions that lack economic substance or use tax havens for the purpose of arbitrary tax evasion.
- Within the scope of normal business activities, we actively take advantage of available tax incentives to optimize tax burdens. If multiple tax treatment options consistent with business objectives are available, we choose the option that minimizes the tax burden.
5. Transfer Pricing Taxation
- For transactions between Group companies in separate countries, we ensure fair tax payment in each country by setting transaction terms at arm’s length and allocating income appropriately according to the functions and contributions provided by the respective companies.
6. Relationships with Tax Authorities
- We strive to maintain good relationships with tax authorities in each country and respond sincerely to their requests for information.
- If audited by a tax authority or requested to submit tax-related documents, reports, or other information based on laws or regulations, we respond in good faith in order to maintain good relationships with tax authorities in each country.
- If a tax authority identifies a problem, we immediately implement measures to prevent recurrence, unless the decision is being appealed.