GovernanceTax Governance

Basic ApproachBack to Top

In performing Group operations, we understand the importance of acting appropriately with integrity and high ethical standards in conformance with applicable laws, regulations, in-house rules, social norms, and other requirements.

Our tax approaches have been affirmed in the TOPPAN Group Tax Policy. We firmly meet a core social corporate responsibility by fulfilling tax obligations under the tax regimes of the countries and regions where we operate.

We are striving for sustainable growth and enhanced medium- to long-term corporate value by adopting a solid Groupwide tax-management framework that secures tax compliance and controls tax-related risks.

TOPPAN Group Tax Policy

In accordance with the TOPPAN Group’s Corporate Philosophy, Corporate Creed, and Conduct Guidelines, we, the TOPPAN Group, position sustainable growth and medium-to-long-term enhancement of corporate value as vitally important challenges for management.

To achieve them, we have formulated the following TOPPAN Group Tax Policy and will establish and implement a tax management framework covering the TOPPAN Group throughout the world.

  • 1. Purpose
    The TOPPAN Group has established the TOPPAN Group Tax Policy as a set of norms for making decisions on tax-related matters based on a fundamental approach of building relationships of trust with stakeholders, contributing to society, and enhancing corporate value by complying with the tax-related laws and regulations of each country and region and fulfilling obligations to pay taxes in an appropriate manner.

    2. Basic Policy
    1) Tax Compliance
    We fulfill our corporate social responsibility by filing tax returns and paying taxes as appropriate when they are due in accordance with international rules and the tax-related laws and regulations of each country and reion in which we conduct business.

    We endeavor to maintain and enhance tax compliance by conducting training and ensuring that officers and employees of TOPPAN Group companies are kept fully informed of policies and other matters related to tax.

    2) Tax Planning
    In the consideration and operation of business activities, we implement effective tax planning in accordance with relevant laws and legislative principles. We endeavor to maximize consolidated cash flow and enhance corporate value through such measures as eliminating double taxation and making effective use of tax incentives.

    We pay taxes as appropriate in the countries and regions in which we conduct business, take a basic approach of contributing to local communities, and do not engage in tax avoidance practices, which seek to excessively reduce tax payments.

  • 3) Tax Risk
    We give sufficient prior consideration to tax risk associated with business activities and aim to reduce tax risk based on advice and guidance from external specialists whenever necessary.

    We strive to resolve uncertain tax positions promptly by seeking advice and guidance from external specialists or by consulting with the tax authorities in advance as necessary in the event of any doubt regarding the treatment or interpretation of tax matters.

    4) Tax Governance
    We establish and implement a global tax governance system to ensure that the companies of the TOPPAN Group comply with international rules and the tax-related laws and regulations of each country and region and file tax returns and pay taxes appropriately when required.

    5) Transfer Pricing
    We analyze the functions, assets, and risks of each of the parties for transactions between related parties based on the arm’s length principle and endeavor to ensure that profits are allocated appropriately in accordance with level of contribution.

    6) Relationship with Tax Authorities
    We strive to build and maintain sound and proper relationships with tax authorities in the countries and the regions in which we conduct business and communicate with them in good faith by providing sincere and factual explanations.

    If any issues are raised or any instructions are given by tax authorities, we clarify the cause of such issues, take appropriate action to rectify them or make improvements, and strive to prevent their recurrence.

Management FrameworkBack to Top

The head of the Finance & Accounting Division of TOPPAN Holdings Inc. is responsible for operating a Groupwide tax management framework. Tax departments in the Finance & Accounting Division supervise this framework based on our tax policy and duly manage operations. They also work with the accounting departments at Group companies to address tax-related challenges and risks.

We are intensifying our Groupwide management framework by handling tax matters appropriately in accordance with advice and guidance from external specialists whenever necessary.

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