We commit to fulfil our responsibilities to society, comply with laws and regulations, and conduct corporate management based on high standards of ethics through the implementation of the “EBARA Way” consisting of the Founding Spirit, Corporate Philosophy and EBARA Group CSR Policy.
In tax matters, we comply with relevant tax-related laws and regulations in each country and jurisdiction and make contributions to those countries and jurisdictions through appropriate tax payments, while striving to maximize shareholder value.
We seek to understand the intent of laws and regulations of each country and jurisdiction and comply with them in good faith. We appropriately report and pay taxes in accordance with the true nature of our business and the spirit of the law, utilizing tax reductions and exemptions on withholding income tax and tax credits provided under tax treaties and other measures.
We build and maintain a tax compliance system through promoting and establishing awareness of tax compliance among management and employees. Accordingly, we continue to provide training, share information, and seek advice on tax treatment to comply with laws and regulations and reduce tax risks.
With regard to our cross-border transactions, we allocate profits appropriately according to the business risks borne by, and the functions and assets of, each relevant company, based on the arm’s length price in accordance with the OECD Transfer Pricing Guidelines, and compile transfer pricing documentation in compliance with the laws and regulations in each country and jurisdiction.
When establishing our transfer pricing policies and practices, we base our policies on the above fundamental concept and work to prevent double taxation by ensuring appropriate income allocation in accordance with the arm’s length principle. In the event of double taxation, we seek to eliminate this by utilizing the relief systems of each country and jurisdiction, and the mutual agreement procedure framework in tax treaties.
We do not use tax havens, such as tax-free and low-tax countries, for tax evasion purposes.
We strive to minimize tax risks in order to increase shareholder value by responding to tax system changes in each country and jurisdiction in a timely manner. Furthermore, we seek to minimize risk and promptly resolve issues by consulting specialists on transactions where the interpretations of tax laws are unclear, and, depending on the situation, by using the advanced pricing arrangement system for prior confirmation with tax authorities.
We maintain good relations with the tax authorities of each country and jurisdiction and ensure appropriate taxation by providing suitable information in good faith in response to requests from the tax authorities of each country and jurisdiction. In the event of any disagreement with the tax authorities of a country or jurisdiction we take suitable steps to come to an appropriate resolution.
| Region | FY21/12 | FY22/12 | FY23/12 | |
|---|---|---|---|---|
|
Income Tax Paid
(Billions of yen)
|
Japan | 6.3 | 8.9 | 10.7 |
| Asia(except Japan) | 3.7 | 4.1 | 6.0 | |
| North America | 1.1 | 2.0 | 2.2 | |
| Others | 0.8 | 2.1 | 2.6 | |
| Total | 11.9 | 17.0 | 21.5 | |
| ※The income tax paid in each fiscal year by group company location, based on the consolidated financial statements for the year ended December 31. | ||||
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