Tax strategy

The Idemitsu Group recognizes that ensuring tax transparency is one of the important social responsibilities a company must fulfill. With the globalization of business, the tax activities of a group tend to be complex and diverse, so we believe that it is even more important to deal with them in an organized manner as a group.

In our group, the Representative Director, Executive Vice President and Executive Officer, who also serves as the CFO, is responsible for tax governance, and under the "Group Basic Tax Policy" below, we have established the "Group Tax Regulations" and "Group Tax Practice Guidelines," etc. We will establish relevant regulations, comply with the tax-related laws and regulations of each country and region, and pay taxes appropriately and fairly. We will also fulfill our responsibility as a company by increasing tax transparency through appropriate disclosure.

The Accounting and Finance Department serves as the department in charge of tax matters, and in accordance with the "Group Tax Regulations," provides information and advice to each department and office conducting transactions of the Company and affiliated companies, provides in-house training, responds to tax investigations, etc., and handles compliance and tax matters. We are considering and implementing necessary countermeasures from a cost management perspective. Employees of our group properly carry out tax procedures in accordance with regulations, and when requested by the department in charge of taxation, report, provide preliminary consultation, and submit related documents without delay.

If a tax compliance violation occurs, we will deal with it strictly and take measures to prevent recurrence in accordance with the regulations established by our group.
In fiscal 2022, there were no major tax compliance violations (0 cases).

Our group appropriately conducts transactions with foreign related parties in each country and region in accordance with the Group Transfer Pricing Practice Guidelines, which are established in accordance with the OECD (Organization for Economic Co-operation and Development) Transfer Pricing Guidelines.

In our Group Tax Practice Guidelines, our group has established a policy of not using countries with low tax rates solely for the purpose of tax avoidance. If we have a business base in a tax-free or low-tax country, we will pay self-assessment tax in accordance with tax law provisions such as combined taxation.

Our group cooperates with tax authorities in good faith and prohibits inappropriate responses such as falsehoods or concealment. In addition, in response to questions and suggestions from tax authorities, we make every effort to provide explanations to gain understanding of our group's views and positions. Furthermore, the Group strives to prevent or minimize the occurrence of tax risks through voluntary disclosure to tax authorities, such as by using pre-inquiry procedures with tax authorities as a means of contributing to appropriate tax payments. I am.

●Tax payment results by country/region (FY2022)