Lion Group Tax Policy
The Lion Group Charter for Corporate Behavior and the Behavioral Guidelines form the foundation of the Lion Group’s compliance framework. We seek to ensure thoroughgoing legal compliance by establishing and appropriately applying internal rules and to develop strong ethics awareness through internal training and education.
The Lion Group strives to correctly understand both the letter and the spirit of tax-related laws and systems in the countries and regions in which it operates and to appropriately fulfill its tax obligations. To this end, the Group has established the Lion Group Tax Policy. By practicing highly transparent tax treatment and appropriately utilizing tax planning and tax incentives, the Group seeks to contribute to the development of local communities and increase its corporate value.
1. Tax Compliance
The Lion Group complies with the laws and regulations related to taxation of each country and region in which it operates and follows the Organization for Economic Co-operation and Development (OECD) guidelines. The Group appropriately fulfills its tax obligations and conducts highly transparent tax treatment.
2. Tax Governance
The director responsible for the Finance Department bears ultimate responsibility for instituting and maintaining tax-related governance systems. The finance divisions manage taxation and accounting in addition to establishing systems and environments that ensure proper communication between Group companies.
3. Tax Planning
The Lion Group does not use tax planning without commercial substance and does not use tax havens for tax avoidance. In the event that it is subject to the anti-tax haven tax systems of the countries and regions in which it operates, the Group appropriately files and pays taxes in accordance with the applicable tax systems.
4. Transfer Pricing
The Group has established a global transfer pricing policy compliant with the OECD Transfer Pricing Taxation Guidelines. Based on this policy, the Group undertakes transfer pricing between Group companies using the arm’s length principle. The Group pays the appropriate amount of taxes in appropriate tax jurisdictions based on the value created through its business activities. In addition, the Group prepares appropriate transfer pricing documents in accordance with the transfer pricing taxation systems of each country and region in which it operates.
5. Utilization of Tax Incentives
While complying with the tax-related laws and regulations of each country and region in which it operates, the Group strives to ensure that its tax expenses are appropriate, mainly through the use of applicable tax incentives.
6. Relationships with Tax Authorities
The Group sincerely responds to requests from the tax authorities of each country and region in which it operates and builds and maintains sound and positive relationships with the authorities. In the event of a difference of opinion between the Group and a tax authority, the Group engages in constructive dialogue and works to resolve the issue.
The establishment, revision and abolishment of this policy are subject to internal approval processes and are reported to the Board of Directors.
Established July, 2021