1.Basic Policy
Under its management philosophy of “Innovation from Japan to the world,” the Simplex Group (the “Group”) conducts its business activities while regarding “5DNA,” which serves as its Code of Conduct, and “Simplex Philosophy” as important values.
By complying with applicable laws and regulations, social norms, and internal rules, and by conducting business in a fair and transparent manner, the Group aims to achieve sustainable growth and enhance its corporate value over the medium to long term.
The Group also recognizes tax matters as one of its key corporate governance priorities and, in accordance with this Policy, works to establish and operate an appropriate tax management framework. By properly fulfilling its tax obligations, the Group seeks to contribute to the development of local communities and to act with sound judgment as a company of integrity.
2.Tax Governance
Ultimate responsibility for tax matters within the Group rests with the Chief Financial Officer (CFO).
Day-to-day tax management is led primarily by the accounting and finance functions of Simplex Holdings, Inc., which work closely with each Group company to share and manage tax-related information.
The CFO monitors the implementation of the Group-wide tax policy and key tax risks and oversees the Group’s tax management framework. Matters of significant importance are reported, as necessary, to the Executive Committee or the Board of Directors.
3.Tax Compliance
The Group complies with applicable tax laws and regulations and strives to understand them properly, including their legislative intent and background.
Based on the value created through its business activities, the Group files accurate tax returns and pays the appropriate amount of tax in a timely manner in the appropriate jurisdictions.
4.Tax Planning
The Group strives to manage its tax burden appropriately in a manner that contributes to the enhancement of its corporate value and the sustainability of its businesses over the medium to long term. To this end, the Group may utilize tax incentives under applicable laws and regulations, provided that such measures are consistent with legitimate business purposes and sound commercial rationale.
The Group does not, however, engage in tax planning whose sole purpose is to reduce tax liabilities without a genuine business purpose or economic substance. Nor does the Group misuse tax havens as a means of tax avoidance or engage in inappropriate tax structuring that is inconsistent with the purpose and intent of applicable tax laws and regulations.
5.Tax Risk Management
The Group identifies, assesses, and manages tax risks within the framework of its Group-wide risk management system, taking into account materiality and reasonableness.
Where tax interpretation of tax laws is unclear, more than one interpretation is possible, or significant uncertainty is foreseeable, the Group strives to maintain a framework for appropriately managing tax risks, including, where necessary, consulting external tax advisers or making advance inquiries with the relevant tax authorities.
6.Relationship with Tax Authorities
The Group maintains open, transparent, and honest relationships with tax authorities. It cooperates with tax authorities to the extent possible in responding to their requests, discloses necessary information, and provides clear and thorough explanations of its tax policy and the rationale for its transactions.
If differences in views arise, the Group seeks to promote mutual understanding through constructive dialogue and to resolve such differences. In doing so, the Group strives to build and maintain sound and positive relationships with tax authorities, while placing importance on the trust of society and its stakeholders.
Simplex Holdings, Inc.
Representative Director, President and CEO
Hideki Kaneko