NISSIN FOODS Group Tax Principle
1. Basic Principle
In accordance with the philosophy of our founder's spirit of “食為聖職 Shoku-i Sei-shoku (Food-related jobs are a sacred profession)”, the NISSIN FOODS Group provides safe and worry-free food products, promotes business to maximize benefits to all stakeholders, and recognizes the enhancement and strengthening of corporate governance as one of the most important management priorities in order to practice highly objective and transparent management.
Also in the tax compliance field, we stipulate the Nissin Foods Group Tax Policy, promote the awareness of NISSIN FOODS Group companies and our employees on tax compliance, and constantly strive to develop and operate an appropriate tax compliance system. We recognize that proper and highly transparent tax administration and proper tax payment according to each country’s taxation system will have a significant influence on the economic and social development of each country and may lead to maximizing benefits to all stakeholders.
2. Efforts towards an International Tax Framework, Ensuring Compliance with Laws and Regulations in Each Country, and Transparency
We understand that international efforts, such as the BEPS (Base Erosion and Profit Shifting) project by the Committee on Fiscal Affairs of the OECD are important measures to ensure tax transparency, prevention of international tax avoidance, and development of a healthy global economy.
The NISSIN FOODS Group is working on an appropriate and transparent tax administration as well as the appropriate payment of taxes by complying with international tax initiatives including the BEPS project and the related laws and regulations of each country.
- ■Concept of Tax Planning
- The NISSIN FOODS Group understands that transactions that have no legitimate business purpose or economic rational will hamper tax transparency and may lead to damaging the Group’s business values and brand value and thus the interests of our stakeholders, including the local communities etc.
We will not conduct tax planning aimed at tax avoidance, such as the use of tax havens by business vehicles without any business objective or substance.
- ■Intercompany Transactions
- Transactions within group companies are based on an arm’s length price, and we strive for an appropriate distribution of profits to each company as well as a proper payment of taxes in each country.
When calculating the arm’s length price, we comply with the OECD guidelines and taxation systems of each country.
3. Minimizing Tax Risks
The NISSIN FOODS Group recognizes that risks related to tax as one of the top priorities for management. According to the Nissin Foods Group Tax Principle, we will minimize tax risks by appropriately responding to tax laws and regulations for the tax administration in each country, and at the same time promote corporate activities to maximize benefits to all stakeholders, including shareholders, consumers, employees, business partners, local communities and neighborhoods etc.
4. Relationship with Tax Authorities
We will provide the appropriate tax related information to the respective tax authorities in each country in a timely manner and will carry out advance inquiries etc. to the extent necessary to build a relationship of trust with the authorities and at the same time strive to comply with each country’s tax system.
- *Based on internal regulations, NISSIN FOODS Group Tax Principle has been approved by the Management Committee (composed of the Directors, etc.) to which the Board of Directors delegates decisions concerning business execution.