Basic Policy

Guided by a corporate philosophy that states, “We will meet people’s needs for energy without fail, and play our part in the sustainable development of Japan and the rest of the world,” as well as its Basic Policy on Sustainability and Compliance Action Guidelines, the J-POWER Group is committed to responsible tax practices and appropriate information disclosure to all stakeholders, and will work to ensure tax transparency.
In addition, by complying with all applicable tax laws and regulations in the countries and regions where the J-POWER Group operates, as well as internationally agreed-upon and shared tax rules and frameworks based on the principles outlined by the Organisation for Economic Co-operation and Development (OECD), and by ensuring proper filing and payment of taxes, the J-POWER Group seeks to enhance its sustainable corporate value while fulfilling its social responsibilities as a multinational enterprise group.

Tax Governance

The J-POWER Group Tax Policy has been established with the approval of the Representative Director, President and Chief Executive Officer, and is reviewed as necessary in response to changes in the business environment, tax systems, and other factors.
In addition, under the active involvement and guidance of the executive in charge of finance, the J-POWER Group has established an appropriate framework that enables the accounting department to perform appropriate accounting and tax management. The J-POWER Group reports significant matters to the Board of Directors and takes appropriate action.

Tax Risk Management

When uncertainty arises regarding the interpretation of tax laws and regulations, the J-POWER Group consults with tax experts and tax authorities to make appropriate decisions. The J-POWER Group also strives to enhance tax compliance awareness among employees through education and awareness campaigns. Through these activities, the J-POWER Group works to mitigate tax risks.
Regarding tax incentives in the countries and regions where the J-POWER Group operates, the J-POWER Group strives to ensure an appropriate tax burden by utilizing such incentives in accordance with their intended purpose, while strictly adhering to applicable laws and regulations. In addition, regarding intra-group international transactions, the J-POWER Group sets prices based on the arm’s length principle and does not engage in aggressive tax planning, such as profit shifting to low-tax jurisdictions, which would run counter to the intent of applicable laws and international rules.

Relationship with Tax Authorities

The J-POWER Group strives to build good, trusting relationships with domestic and international tax authorities by providing timely and appropriate tax information and responding in good faith during tax audits.