JT Group Tax Policy

1. Purpose

The JT Group Tax Policy (hereinafter, the “Policy”) outlines the framework for ensuring appropriate conduct of tax affairs to enhance the corporate value through our “4S” model1. This policy is approved by the JT CEO.

This policy provides general guidance in respect of tax compliance, tax management and the use and engagement of external tax advisors, and relationships with tax authorities and business partners within the JT Group.

2. Basic Policy

a) Tax Compliance

JT Group will:

  • Comply within both the letter and spirit of local laws and regulations in every country and region in which JT Group conducts business
  • Use the arm's length principle for all transfer pricing
  • Submit tax returns accurately and in time
  • Make tax payment when due
  • Retain adequate documentation supporting its tax filings and payments
  • Comply with IFRS and / or local GAAP accounting as appropriate to their business, in respect of Taxes
  • Comply with Operating Guidelines related to the Policy
  • Report to JT management on regular basis in order to confirm compliance

b) Tax Risk Management

JT Group will:

  • Seek a consistent and balanced approach regarding Tax Risk Management
  • Demonstrate the highest level of integrity and abide by the highest standards and comply with laws, regulations and other rules

JT Group will not:

  • Use an entity only for tax purposes
  • Use secrecy jurisdictions or tax havens only for tax purpose
  • Undertake tax planning for its own sake

c) Utilization of External Tax Advisers

JT Group establishes and maintains relationships with External Tax Advisers for the followings:

  • Achieve the highest quality of Tax Compliance and Tax Risk Management
  • Ensure efficient and effective utilization of External Tax Advisers
  • Ensure the highest standards of service at the lowest cost level
  • Reduce the reliance on External Tax Advisers in order to develop the internal capabilities within the JT Group
  • Where necessary for attorney/ client legal privilege, ensure consideration is given to use of a legal firm as External Tax Advisers

d) Relationship with tax authority

JT group will:

  • Maintain the appropriate level of relationship with tax authorities to ensure a high standard of corporate reputation
  • Maintain a proactive, open and transparent communication with tax authorities in order to enhance their understanding of the JT Group business and resolve matters in a constructive manner where disputes arise with regard to the interpretation and application of tax legislation
  • 1 We strive to fulfill our responsibilities to our valued consumers, shareholders, employees and the wider society, carefully considering the respective interests of these four key stakeholder groups, and exceeding their expectations wherever we can.