Basic View
- Shimizu strives for transparent, sound corporate accounting in accordance with the Code of Corporate Ethics and Conduct formulated to ensure compliance management based on high corporate ethical values. These values are rooted in the company credo of the Analects and the Abacus. We also work to improve employee awareness of tax compliance and maintain a tax governance structure based on our recognition of Shimizu’s social obligation as a company to comply with the relevant tax laws and regulations in each country and pay appropriate taxes.
- We understand that paying our fair share of taxes to contribute to the economic and social development of each country in accordance with an appropriate tax policy will earn the trust and support of all stakeholders.
Compliance with Tax Law
- Based on the Code of Corporate Ethics and Conduct, Shimizu seeks to deepen the support and trust of all stakeholders, including countries and regions where it conducts business, shareholders, creditors, business partners, and employees, by understanding the legislative intent and social background of tax-related laws and regulations in each country where it operates, complying with those laws and regulations, and paying taxes appropriately, while aiming for sustainable growth and the enhancement of corporate value.
- Shimizu understands the importance of international initiatives such as the BEPS (Base Erosion and Profit Shifting) project by OECD (Organisation for Economic Co-operation and Development) in ensuring transparency in taxes and preventing international tax avoidance. We also respond appropriately to changes in rules relating to international taxation.
Tax Havens
- Shimizu does not use countries or regions with no or low taxes (so-called tax havens) solely for tax avoidance or income shifting.
Transfer Pricing Taxation
- With respect to transactions within the Group, we strive to ensure that income is allocated appropriately in line with the substance of the transactions by setting prices based on the arm’s length principle in accordance with the laws and regulations of each country and region. In addition, where countries or regions require transfer pricing documentation to be maintained or submitted, we prepare it accordingly.
Response to Tax Risk
- Shimizu responds as appropriate to tax system revisions in each country, and endeavors to minimize tax risk on an ongoing basis to maximize shareholder value.
- We follow appropriate tax procedures in accordance with relevant laws and regulations. When the interpretation of a transaction in our business activities with regard to taxes is unclear, we endeavor to reduce uncertainty in our tax position by seeking expert advice and otherwise examining the transaction sufficiently, and obtaining confirmation from the tax authorities in advance, when necessary.
Relationship with Tax Authorities
- We endeavor to ensure transparency in tax matters and build a relationship of trust by maintaining an impartial relationship with tax authorities, providing the proper tax information to tax authorities in a timely manner, and responding in a sincere manner.
Oversight
- At Shimizu, the officer responsible for finance oversees the Accounting Department, which is in charge of tax-related operations, and supervises the proper fulfillment of tax payment obligations in accordance with the Tax Policy.
