International tax rules triggered by the Base Erosion and Profit Shifting (BEPS) project by the Organization for Economic Co-operation and Development (OECD) are becoming more complex year by year, and the importance of corporate governance related to taxation is increasing in Japan. MITSUBA Group has established the “Group Tax Management Regulations” and is working to strengthen appropriate tax payment and tax governance on a global basis, and to maintain and improve tax compliance.
Based on the mission statement of “providing pleasure and peace of mind to the people of the world”, MITSUBA Group strives to comply with the tax-related laws and norms of each country and region as well as international rules in order to realize fair business activities. MITSUBA believes that paying taxes is a corporate obligation, and strives to contribute to society through appropriate tax payments.
Under the responsibility of the Chief Financial Officer, the MITSUBA Accounting Department has established a global tax governance system to address tax-related matters. At each Group company, a tax manager appointed by the president of each company is responsible for managing and supervising tax operations and reporting to the MITSUBA’s Accounting Department.
In the MITSUBA Group, we conduct education and awareness activities to ensure that each employee is aware that complying with tax laws and rules is the best way to minimize tax risks and increase corporate value, and to ensure tax compliance. MITSUBA's Accounting Department has established rules for expense processing, fixed asset management, inventory management, etc., and is working to ensure that employees are fully aware of these rules by disseminating information via the intranet.
Moreover, in order to confirm the results of appropriate accounting procedures, accounting audits are regularly conducted by external organizations at all Group companies. In addition, MITSUBA and its major subsidiaries have systematically established and implemented internal controls based on the internal control reporting system (J-SOX) under the Financial Instruments and Exchange Act, and the effectiveness of these controls is confirmed through internal control audits by external organizations.
MITSUBA has established reporting lines from each MITSUBA Group company to collect information on tax risks. Highly important matters are reported to the Management meeting based on the judgment of the Chief Financial Officer.
Moreover, MITSUBA is working to reduce tax risks by providing advice from experts and confirming with tax authorities.
MITSUBA Group appropriately and effectively uses reduction measures and strives to optimize tax burden but does not engage in tax reduction by interpreting or applying them in manners deviating from the intent of laws and norms. Moreover, we do not engage in tax avoidance using tax havens and so on.
MITSUBA Group strives to ensure proper filing of tax returns and reduce tax risks by building and maintaining good relationships with the tax authorities of each country and checking with the tax authorities in advance if necessary.
MITSUBA Group discloses important tax-related matters to stakeholders in a timely manner.
Moreover, the IR personnel in the Accounting Department provides sufficient information and answers to tax-related questions from stakeholders.
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