Tax Policy

Basic Policy

Ryohin Keikaku Co., Ltd. (Ryohin Keikaku) has established a tax policy that applies to Ryohin Keikaku and its consolidated subsidiaries (Ryohin Keikaku Group) covering tax practices and tax risks (as defined in 1.2 below).
The overall aim of the tax policy is to reflect and support the business by ensuring a sustainable tax rate, mitigating tax risks in a timely and cost-efficient way and complying with applicable tax laws and regulations in the countries or regions in which Ryohin Keikaku Group operates businesses.

• We are committed to complying with all applicable tax laws and regulations in the countries or regions in which we operate businesses. We will also follow the standards regarding taxes issued by international organizations (OECD, EU, UN, etc.).
• We will also work to minimize tax risks arising from legislative and regulatory changes in each country or region.
• We ensure the proper establishment and management of business processes and procedures related to tax practices, thereby achieving appropriate governance concerning tax laws.

1. Approach to risk level, risk management and governance

1. 1 Governance

• Ryohin Keikaku considers tax risks to be an important risk and have established a basic policy and guidelines for risks (based on approval by the Board of Directors). Reports on risks are also regularly reported to the Board. These policies and guidelines are translated into necessary measures in collaboration with consolidated subsidiaries.
• Each consolidated subsidiary fulfils its tax duties, including preparing and filing tax returns, making tax payments and dealing with tax audits appropriately in accordance with our tax policy. They also send information and relevant documents to us upon request.
• The Board of Directors is responsible for overseeing tax risks, and our director or operating officer overseeing the tax department is responsible for the tax management.

1. 2 Risk level and risk management

• As business structures become increasingly complex and diverse, the tax management of Ryohin Keikaku Group has also grown more intricate. Within these complex tax processes, there are inevitable risks (tax risks) such as underreporting, overreporting, or delays caused by errors or omissions. We believe it is impossible to eliminate these tax risks. Therefore, Ryohin Keikaku Group is committed to mitigating tax risks through careful and thorough pre-assessment of their frequency and potential impact.
• As business structures become increasingly complex and diverse, the tax management of Ryohin Keikaku Group has also grown more intricate. Within these complex tax processes, there are inevitable risks (tax risks) such as underreporting, overreporting, or delays caused by errors or omissions. We believe it is impossible to eliminate these tax risks. Therefore, Ryohin Keikaku Group is committed to mitigating tax risks through careful and thorough pre-assessment of their frequency and potential impact.
• Transfer prices applied to cross-border related-party transactions within Ryohin Keikaku Group are determined in accordance with local regulations and the arm’s length principle.
• In the case of double taxation, where the same economic profit is taxed in multiple countries or regions, We will follow applicable tax treaties, if any, signed in the jurisdiction concerned.

2. Tax planning

Ryohin Keikaku Group will ensure that the right amount of tax is paid on time.
Within the confinement of applicable regulations, we will use tax planning to support its business strategy. External professional advice (including but not limited to local tax authorities in each county or region) may be sought as necessary.

3. Approach to dealing with tax authorities

Ryohin Keikaku Group is committed to maintaining a transparent and open relationship with local tax authorities in each county or region (including but not limited to HMRC in the U.K.) based on collaboration and integrity.

In particular with regard to:

• We disclose information to tax authorities in a fair, accurate, and timely manner. We also respond promptly to inquiries and requests for information from the tax authorities.
• If any issues arise with the tax authorities, we strive to resolve them in a timely manner. In cases of differing opinions, we work collaboratively with the authorities to find common ground and resolve the issues.
• Interpreting the relevant regulations in a reasonable way, and ensuring transactions are structured consistently
• Being open and transparent about tax planning, governance and decision making

The tax policy has been approved by the Board of Directors of Ryohin Keikaku Co., Ltd.

(Last updated in January 2021)