The Group has formulated the JFR Tax Policy, which describes the Group’s approach to tax, with the aim of further improving corporate value through tax governance.

JFR Tax Policy

Basic policy

In order to realize corporate governance, J. Front Retailing Group (the “Group”) strives to comply with applicable laws and regulations and related rules in each country and region in which we conduct business and to realize fair and transparent management at J. Front Retailing Co., Ltd. (the “Company” or “JFR”) and operating companies.
Based on this idea, we have established the JFR Tax Policy, which describes the Group’s approach to tax, with the aim of fulfilling our corporate social responsibilities by addressing tax risks appropriately and paying taxes properly in a manner aware of tax compliance, as well as further improving corporate value through tax governance.

1. Compliance with laws and regulations

We will comply with tax-related laws and regulations, keep track of their revisions in an appropriate and timely manner, and properly file tax returns and pay taxes.
We will not engage in tax planning that is deemed to be a deliberate tax avoidance action that does not meet our business objectives, and will not use tax havens to avoid paying taxes. In addition, in international transactions, we will comply with the laws and tax treaties of each country and international taxation rules.

2. Ensuring transparency

We will strive for highly transparent tax management by disclosing our management figures and tax payment status to stakeholders in a timely and appropriate manner in accordance with the domestic laws of each country in which we conduct business.

3. Tax risk management

We will endeavor to reduce tax risks by making preliminary inquiries to tax authorities, if necessary, in the event that material tax issues or special transactions arise when performing tax processing in compliance with laws, regulations and various rules. When problems are pointed out, we will take appropriate measures after thorough examination based on advice from experts.

4. Tax governance

We will establish a tax governance system led by the Executive Officer in charge of the finance of the Group, in which the finance division of the Company carries out the tax management of the entire Group. In addition, we will strive to establish a system and environment that facilitates sufficient communication between each division of the Company and each Group company.
The Audit Committee, which is composed of individuals with expertise in finance, accounting, and legal affairs, and the audit division are responsible for overseeing the execution of tax-related operations.
In addition, in order to understand the tax laws applicable to each Group company, we will perform proper and legal tax processing by working to improve employees’ tax knowledge through training, education and other means. At the same time, we will require each Group company to develop tax governance and appropriately report their tax affairs.

5. Relationship with tax authorities

We will endeavor to build good relationships of trust with the tax authorities in each country in which we do business and relevant international tax authorities to ensure the transparency and reliability of our tax affairs.

End

Established on January 30, 2021

Corporate Governance

• Corporate Governance System

• Board of Directors

• Nomination Committee, Audit Committee, and Remuneration Committee

• Nomination/Appointment/Succession Planning

• Officer Remuneration System

• Evaluation of the Effectiveness of the Board of Directors

• Basic Capital Policy/Shareholder Return Policy/Cross-Shareholdings

• JFR Tax Policy