CSR Activity Report (CSR Guideline Activity Reports) - Ethics and Compliance

Ensuring Tax Compliance

Toray Group Tax Policy

With the release of a policy by the Organisation for Economic Co-operation and Development (OECD) to combat base erosion and profit shifting (BEPS), the complexity of taxation rules worldwide is steadily increasing. Due also to the growing importance of corporate governance related to taxation in Japan, Toray Group recognizes the necessity of highly transparent tax practices and corporate social responsibility. Therefore, the Group has enhanced its tax compliance efforts based on the Toray CSR Guidelines.
To ensure that this initiative can be taken to an even higher level, the Group has once again clarified the basic taxation compliance approach that each employee should take, and established the Toray Group Tax Policy, which was approved by the Board of Directors in April 2020.
Under the responsibility of the general manager of the Finance and Controller’s Division1, Toray Group will continue striving to improve its tax compliance while building its tax governance structure, centered on the Tax Department, to enhance corporate value.
Toray Group operates the Corporate Ethics and Legal Compliance Helpline, a whistleblowing system for group companies in and outside of Japan to report and consult on ethics and compliance issues, including unethical or illegal activities and concerns related to tax matters.

  1. 1 As of July 2023, a senior vice president (member of the board) serves as the general manager of the Finance and Controller’s Division.

Toray Group Tax Policy(Established April 2020)

Toray Group will continue to uphold the following tax policy and strive to improve its tax compliance while building its tax governance structure, to enhance corporate value.

Basic Policy

  1. Toray Group makes efforts to pay taxes appropriately by complying with the tax laws of each country and international taxation rules.
  2. Toray Group makes efforts to enhance corporate value and maximize shareholder value while minimizing tax risks and optimizing tax expenses.
  3. Toray Group will not conduct arbitrary tax avoidance using tax havens or other methods.
  4. Toray Group establishes good relationships with the tax authorities of each country.

Tax Compliance

Toray Group employees (including executives) recognize that complying with tax laws and rules is the best way to minimize tax risks and enhance corporate value. The Group conducts trainings so that employees can ensure tax compliance.

Tax Governance

Toray Group clarifies and implements tax rules within the Group to manage tax expenses and aim for an appropriate tax burden.
The Group makes efforts to establish good relationships with tax authorities in each country on matters that require cooperation.

Other Initiatives

Transfer pricing is becoming more important as global trade increases. Toray Group therefore strives to allocate income appropriately by calculating transfer pricing using the arm's length principle. Moreover, the Group does not carry out tax planning strategies with the intention of inappropriately reducing Group taxes.

Click here for the main initiatives for CSR Guideline 2, “Ethics and Compliance” in CSR Roadmap 2022.