NGK Group Tax Policy
The NGK Group regards compliance as an essential factor in gaining the trust of all of our stakeholders and defines it as the foundation of sustainability. In order to maintain and improve our tax compliance, we will work to maintain tax transparency and enhance awareness among our employees while also building the necessary framework to ensure compliance with laws and regulations and prevent corruption.
The NGK Group ensures thorough compliance in accordance with the NGK Group Code of Conduct by complying with the tax laws of each country and region and the international agreements that apply to the NGK Group and respecting the spirit of taxation laws.
NGK has established the NGK Group Tax Policy and will ensure compliance with the said policy. We gather and confirm information related to the tax position and tax governance system of our Group companies to help the NGK Board of Directors fulfill its responsibility of overseeing group tax risks. The day-to-day financial accounting and tax activities of the Group companies are managed by the financial managers of each Group company, with the involvement of the president of respective companies. They also report important tax matters to the head of their NGK business group and the NGK Board of Directors in an appropriate manner.
The NGK Group considers compliance to be an important aspect of risk management. We always act with integrity, minimizing our tax risks through compliance with applicable tax laws, regulations, rules, international agreements and commercial practices, and our own internal regulations. The NGK Group pays taxes in the appropriate jurisdictions in accordance with the state of our revenue-generating activities without engaging in aggressive tax saving schemes. When dealing with non-routine tax issues, we consult external experts for advice where necessary.
4.Optimization of Tax Burden
The NGK Group does not establish artificial business structures for the purpose of reducing its tax burden. We use available tax incentives to the extent that they fall within the scope of our business objectives. We work to eliminate double taxation where it occurs. Cross-border transactions among Group companies are carried out in accordance with OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
5.Relationship with Tax Authorities
The NGK Group acts with good faith and transparency and responds promptly to requests for information from tax authorities of each country and region. We intend to develop long-term, amicable relationships with tax authorities based on mutual trust and respect.