Sustainability | GovernanceTax Strategy
Our Approach
Governance
Corporate governance relevant to taxes of the TDK Group is embedded within its overall governance system. This system provides a framework for compliance with applicable tax laws and regulations, minimization of tax risks, maximization of corporate value, and realization of growth for the TDK Group. The corporate governance of taxes is executed under the responsibility of the CFO (Chief Financial Officer), and is delegated in part to persons in charge of taxation at each Group company.
Refer here for more details on risk management activities and major risks.
Strategy
The TDK Group seeks to maximize corporate value while maintaining full compliance with all applicable tax laws and regulations. We continuously monitor changes in the tax environment as well as evolving business models, to identify both tax risks and benefits.
For important transactions such as those with significant tax impacts or those with a high degree of tax uncertainty, the Group managerial decision-making bodies finalize responses based on advice from external experts.
Risk Management
The tax function minimizes tax risks through close cooperation and information sharing with other departments. In cases in which tax uncertainties are identified, these are reported in an appropriate manner, with the responses to be undertaken then finalized in accordance with normal procedures. In addition, to minimize the tax risks involved with regards to significant transactions where applicable tax-related laws and regulations have a broad range of potential interpretations, or where no clear regulations exist, advice from external experts is sought, or pricing arrangements or rulings obtained from tax authorities.
When undertaking risk management in relation to tax, we follow our company-wide risk management process, implementing a PDCA cycle that includes a series of tax-related risk management activities—identification of tax-related risk, assessment, deliberating on and implementing countermeasures, and monitoring—until improvement has been made.
Initiatives
Implementation of Fiscal Year-end e-Learning in Japan
In Japan, we have implemented fiscal year-end e-learning for all company employees, from directors on down. This was conducted so as to raise awareness of the importance of compliance in relation to thorough implementation of proper tax handling, not engaging in the alteration or destruction of documents, not attempting to conceal or falsify facts, and other aspects of tax compliance.
Implementation of Education for Personnel Responsible for Tax Matters in the U.S.
Study sessions were held for personnel responsible for tax matters in the U.S., with the company responsible for overseeing operations in the U.S. playing a central role; the matters covered in the study sessions include changes to the tax system in the U.S., performance of tax-related tasks, etc.
Holding of a Meeting for Personnel Responsible for Tax Matters in China
A China region tax matters meeting was held in Shenzhen, with the company responsible for overseeing operations in China playing a central role, to strengthen understanding of changes to the tax system in China and of the Global Minimum Tax, etc. among personnel responsible for finance and accounting. A total of around 70 personnel from all of TDK’s businesses in China attended the meeting.
Holding of a Meeting for TPOs in Europe
A transfer pricing study session was held, with the company responsible for overseeing operations in Europe playing a central role, that brought together transfer pricing officers (TPOs) in the Europe region.
