Last Updated: 2020.12.23
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In keeping with our corporate statement, Changing clothes. Changing conventional wisdom. Change the world, Fast Retailing seeks to accelerate the expansion of its global business operations. We also recognize that the further our global business develops, the greater the need for an appropriate global approach to tax affairs.
Whether it be tax framework revisions in the markets in which we operate, or tax practices relating to cross-border business or new market entry, Fast Retailing senior management leads the drive for a Global One, Zen-in Keiei approach to tax affairs. In other words, we need to encourage not only members of our tax team, but each and every one of our employees to strive to ensure full legal compliance through the appropriate management of tax affairs.
To us, appropriate tax management involves paying taxes that are based on fair and equitable reasoning and actual business conditions, and comply with local tax law in each country and area in which we operate, international tax laws, and OECD Transfer Pricing Guidelines. We also believe that the payment of appropriate taxes plays in important role in supporting the economic and social development of each of these countries and areas. For these reasons, Fast Retailing strives to ensure legal compliance at all times, to establish and operate appropriate frameworks and functions for accounting and tax affairs departments, and to actively collect pertinent information from specialist institutions.
Fast Retailing's fundamental tax practice is built on the following commitments:
Legal compliance
Fast Retailing seeks to fulfill its payment of taxes obligations by complying with local and international tax laws and OECD Transfer Pricing Guidelines. We recognize that the level of Fast Retailing Group tax management increases in complexity as our global operations expand, so we seek to minimize tax-related risk by thoroughly investigating all potential requirements in advance in consultation with specialist tax advisors. Fast Retailing does not use tax havens for the purpose of tax avoidance.
Transparency
Fast Retailing understands that global interest in the transparency of multinational corporations' tax management is growing, and so we strive to ensure transparency by disclosing and adhering to our fundamental stance on tax practices.
Appropriate organization of tax function
The Fast Retailing Group chief financial officer is responsible for tax management. We have a global tax team staffed by extremely knowledgeable members who work to ensure appropriate tax management on a daily basis. Our global tax team works closely with local tax authorities in all markets in which we operate to ensure a speedy response to any tax-related issues that arise at individual Group companies. Details of any tax-related issues are reported directly to the Fast Retailing Group CEO and CFO, we have systems in place to resolve them. In addition, we discuss or report any tax-related issues that arise in each of our business segments to relevant Board meetings as required. We also submit regular reports on tax matters to Audit ＆ Supervisory Board Members and the Audit ＆ Supervisory Board, and we strive to constantly uphold and improve tax-related corporate governance through this kind of regular reporting.
Educational activities
Our tax team members participate regularly in external seminars and other educational opportunities to ensure we always have access to full, up-to-date information. While we do seek technical support from large tax accountant corporations and law firms with regards to tax issues requiring highly specialist knowledge and experience, we are committed to nurturing a growing in-house tax team by amassing and exploiting our own tax-related expertise. We also hold internal training to share necessary tax-related information with all Fast Retailing employees.
Appropriate communication with tax authorities
Fast Retailing strives to ensure open and pertinent communication with tax authorities in all counties and area in which we operate. We work hard to build appropriate communication channels with each individual tax authority to avoid any discrepancy of opinion regarding the processing or interpretation of tax affairs, and resolve any issues that may arise.
Published December 1, 2018
