JT Group Tax Policy

1. Purpose

The JT Group Tax Policy (hereinafter, the “Policy”) outlines the framework for managing JT Group’s Global tax affairs to improve the corporate value through our “4S” model1.

2. Basic Policy

a) Tax Compliance

JT Group shall do the followings:

  • Comply with laws and regulations in every country and region in which JT Group conducts business
  • File all required tax returns accurately and on a timely basis
  • Make payment of tax when due
  • Retain adequate documentation supporting its tax filings and payments
  • Book the tax-related items accurately within agreed deadlines in management and statutory accounting
  • Comply with tax accounting standards appropriate to the business and the jurisdiction
  • 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 shall do the followings:

  • 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 shall not do the following:

  • Use an entity 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, avoiding fee duplication
  • 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 shall do the followings:

  • Maintain the appropriate level of relationship with tax authorities to ensure a high standard of corporate reputation
  • Maintain proactive communication with tax authorities in order to enhance mutual understanding of the JT Group business

  • 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.