Tax Management
Basic Policy
The Alps Alpine Group values the independence and autonomy of its Group companies while drawing on their close cooperation and collective strengths based on its Founding Spirit. The Group continues to “strive for fair management from a global perspective, which is achieved by strictly enforcing observance of the law, its corporate policies, societal customs, and good business ethics with the cooperation of all Group employees.”
In regard to tax matters, our basic policy is to fulfill our social responsibility through compliance with tax-related laws and regulations and appropriate payment of taxes in each country or region. We also seek to increase value for shareholders through minimization of tax risk and suitable tax planning.
Tax Governance
The Chief Financial Officer, who is a director of the board, is the person responsible for tax governance by the Alps Alpine Group. The tax affairs department reports on and manages day-to-day administration of tax governance. Group companies around the world routinely report details of corporate tax returns for the purpose of ongoing monitoring, while the CFO reports to the Board of Directors on major tax risks, such as tax inspections.
Tax Planning
As Alps Alpine increasingly undertakes business activities on the global stage, the company makes effective use of favorable tax regimes in the different jurisdictions to maximize value for shareholders. However, we do not employ tax advantages where the use of them departs from the purpose of the law. Nor do we deliberately engage in tax avoidance without the underlying business reality.
Tax Risk
The Alps Alpine Group carries out tax procedures in compliance with tax-related laws and regulations, though we recognize the potential for tax risks to eventuate given the inherent uncertainties in tax operations. Where a tax risk is identified, we work to minimize that risk, enlisting the support of outside experts as required.
Transfer Pricing Regulations
The Alps Alpine Group has established a set of pricing standards for transactions between group companies that follows the OECD Transfer Pricing Guidelines. In accordance with these standards, prices for transactions between group companies are set based on the arm’s length principle and profit is fairly distributed according to the risks borne by, and functions and assets possessed by, each group company.
Relations with Tax Authorities
The Alps Alpine Group appropriately provides information to tax authorities in each jurisdiction on request. Where differences of opinion arise between the company and the authorities, the matter is resolved through constructive dialogue.
Corporate Tax Payments (Based on Reports within Each Jurisdiction)
The following table shows taxes paid in each jurisdiction during the year ended March 2024.
Unit: Billion yen
| Jurisdiction | Taxes paid |
|---|---|
| Japan | 3.5 |
| China | 7.5 |
| United States | 2.0 |
| Korea | 0.6 |
| Mexico | 0.5 |
| Thailand | 0.3 |
| Sub-total | 14.7 |
| Other | 1.2 |
| Total | 15.9 |
* Jurisdictions accounting for less than 10% of the total taxes paid are included in “Other.”