Tax Governance Policy
The Obayashi Group recognizes that tax is an important part of the infrastructure of society. In order to contribute to realizing a sustainable society, the Obayashi Group has formulated the following tax governance policy to guide the company in acting responsibly with regard to tax.
Ensuring compliance with laws and regulations
The Obayashi Group complies with every country and regional jurisdiction's tax laws and regulations, and the Obayashi Group fulfills its tax return filing and payment obligations.
Tax governance
The executive officer in charge of finance is responsible for tax governance as part of the finance function of the Obayashi Group. The Obayashi Group has established a structure in which significant tax matters are reported by the tax division to the responsible person as appropriate. In addition, we strive to raise awareness and recognition of tax operations through training and instruction of directors and employees.
The Obayashi Group manages tax risk appropriately and strives to minimize tax risk by using external professionals and obtaining advance tax rulings from the tax authorities as necessary.
Tax havens
The Obayashi Group does not use tax havens for the purpose of tax avoidance.
Transfer pricing rules
The Obayashi Group strives to set the prices of intra-group transactions at an arm's length rate pursuant to laws and regulations of each country and regional jurisdiction, and to allocate income based on actual substance. Additionally, where furnishing or filing of transfer pricing documentation is required in a country or regional jurisdiction, the Obayashi Group complies such documentation requirements.
Tax planning
The Obayashi Group does not undertake tax planning that lacks a reasonable business purpose. In addition, with the understanding that the Obayashi Group complies with applicable tax laws and regulations and carefully considers legislative intent, we strive to bear appropriate tax costs by avoiding double taxation and applying for available preferential tax treatment, thus improving shareholder value through tax efficiency.
Relationship with the tax authorities
The Obayashi Group strives to build and maintain a transparent and good relationship with the tax authorities by providing appropriate tax information and acting in good faith with the tax authorities during tax audits.
Ensuring transparency
The Obayashi Group seeks to ensure transparency regarding tax matters with regard to the tax authorities, shareholders, investors and the local communities by disclosing tax information pursuant to the relevant laws, regulations, and accounting standards of every country and regional jurisdiction.