Recognizing that the company is a public entity of society, the Nittobo Group strives to observe not only laws and ordinances but also social norms and to continue being a company that is trusted by society. As long as the company is a member of society, this attitude is the starting point of our corporate survival that absolutely must be safeguarded. Laws relating to the company, such as the Companies Act and Tax Act, cover a wide range, so rather than simply recognizing that laws should not be violated, open and fair business activities must be conducted with a constant spirit of compliance and firm ethical view.
Regarding taxation, we must recognize that fulfilling our obligations to pay appropriate taxes and contributing to social development through our corporate activities are a social responsibility of the company. The payment of appropriate taxation in accordance with the related laws, ordinances, and regulations of each country or territory has an impact on the economic and social development of that country, and the indication of efforts to promote tax compliance is necessary. A lack of tax compliance, and in turn arbitrary tax evasion, invites not only the direct risk of tax lawsuits and penalty taxation but also, if the situation comes to light, the risk of loss of trust in the company and the risk of a deterioration of relations with countries and territories where the Nittobo Group conducts business.

By submitting tax information in a timely and appropriate manner and responding with sincerity to the tax authorities in countries where the Nittobo Group conducts business, and to related international tax authorities, it is possible to build constructive and trustworthy relations with those tax authorities.
The Nittobo Group will endeavor to declare and pay taxes in a timely manner in accordance with laws, ordinances, and regulations relating to each company and to supply information appropriately and cooperatively in response to requests from tax authorities. In addition, we strive to clarify our long-term tax position by reaching advance agreements with tax authorities using prior confirmation systems, etc.
Furthermore, we will respond with sincerity in the case of tax investigations. Regarding our status as a consolidated tax payment company in Japan, we will respond based on the provisions of our practical guidelines relating to tax investigations.

The Nittobo Group recognizes that the guidelines of the Organization for Economic Cooperation and Development (OECD) and the OECD/G20 Base Erosion Profit Shifting (BEPS) Project are essential initiatives to prevent international tax evasion and abusive tax planning and to ensure tax transparency through the disclosure of tax information. In particular, we will strive to respond to issues relating to transfer pricing taxation.
Specifically, we recognize that we must realize the proper distribution of international income in accordance with the contributions of Group companies and prevent arbitrary tax evasion by avoiding the transfer of income between countries. By calculating transfer pricing based on the OECD Transfer Pricing Guidelines, the Nittobo Group will endeavor to pay appropriate taxes in each country.

As well as dissemination through the in-house newsletter, in-house intranet bulletin board, etc., the Nittobo Group will conduct planned training on the theme of taxation as a part of compliance training. Through such initiatives, we strive to raise awareness of taxation among employees.
In addition, we will endeavor to maintain and enhance taxation skills by requesting accounting divisions in Japan to regularly share tax information throughout the Nittobo Group.