The DIC Group's Approach to Tax
Guided by its “Color & Comfort by Chemistry Emanagement vision, the DIC Group strives to conduct business in a manner that meets the expectations of its stakeholders—including its shareholders, customers, suppliers and employees—with the aim of contributing to sustainable development for society and the global environment. The Group acknowledges the importance of fulfilling its tax obligations and aims to ensure that it remains a globally trusted corporate citizen.
We have formulated the DIC Group Code of Business Conduct, which outlines standards that Group employees are expected to observe, and recognize compliance with all laws, including those related to taxation, as a key social responsibility. Giving consideration to international tax rules and the laws of the countries and territories in which we operate, we require Group companies to apply the following principles to ensure tax transparency:
Attitude toward Tax Planning
We engage in fair and appropriate tax planning that reflects the nature of our businesses. We comply with international tax rules, as well as with the laws of the countries and territories in which we operate, and seek to minimize tax risk.
Transactions between DIC Group companies are conducted on an arm's-length basis and in accordance with current Organization for Economic Co-operation and Development (OECD) transfer pricing guidelines.
We establish appropriate entities in countries and territories in jurisdictions suitable for our investments and operations. As well, we do not engage in artificial tax arrangements or tax avoidance activities using tax havens and do not conduct tax planning that does not correspond to genuine operational substance.
Relationships with Fiscal Authorities
We seek to build and sustain relationships with governments and fiscal authorities that are constructive and based on mutual respect. We also work collaboratively with fiscal authorities to resolve disputes and to achieve early agreement and certainty.
We recognize the importance of increasing tax transparency through initiatives aimed at promoting greater understanding of international tax rules and related laws and at building public trust.
Tax Risk Management
We seek external tax advice and assess tax risk included in certain complex business undertakings and transactions as necessary to ensure compliance with international tax rules and the laws of the countries and territories in which we operate.
Guided by our basic risk management policy, we address changes in our operating environment and the diversification of risks as an integral component of internal control, and organize internal training programs to advance awareness with the aim of reducing tax risk. We also implement measures to assess and manage tax risk appropriately and monitor the effectiveness thereof.
We work to develop and maintain appropriate systems for tax governance under the direction of the executive officer serving as Chief Financial Officer for DIC Corporation, the DIC Group's parent company.
The DIC Group's approach to tax was approved by DIC's Board of Directors on November 14, 2017.
- The publication of this statement is regarded as satisfying the DIC Group's obligation under Paragraph 16(2), Schedule 19 of the United Kingdom's Finance Act 2016.