The fundamental philosophy of the Maxell Group is, inheriting the founding spirit of "harmony and cooperation", "working with heart and soul", and "being of service to society", to contribute to society through the development of outstanding and unique technologies and products, under the new corporate creed of "harmony and cooperation, working with heart and soul, and contributing to society". Maxell acknowledges its responsibility as a member of society and will ensure that its conduct is fair and transparent. As a good corporate citizen, we also intend to contribute to the creation of a truly rich society by working in harmony with the environment and by engaging in corporate citizenship activities.

These philosophies apply to our approach to tax. As a global corporation, we believe that paying the right amount of tax at the right time is an important part of our contribution back to society and local communities.

This Global Tax Policy applies to Maxell, Ltd. and its group subsidiaries (the "Maxell Group"). This has been published for transparency purposes and to address any country specific disclosure requirements.

Governance and risk management

Our Global Tax Policy has been approved by the Board of Directors who are ultimately responsible for tax and finance operations for the Maxell Group. Responsibility for the development and application of tax policies and procedures has been delegated to the Group Finance Director of Maxell. The Finance Leader of the Maxell Group oversees duties performed by Local Finance & Accounting personnel. Local Finance & Accounting personnel are required to follow minimum control standards which have been defined for each major tax process. We consider our tax risk to be minimized. There is an open line of communication between the management of the Maxell Group to share any commercial matters that may carry an inherent level of tax risk.

Compliance and reporting

In accordance with The Maxell Group Corporate Credo, we comply with all laws and regulations at home and abroad, respecting the culture and customs of each nation and region. We act with the highest sense of ethics and transparency and disclose information in a timely and appropriate manner. Tax compliance activities are performed by a combination of in-house specialists and external advisors. We aim to establish sound relations with government tax authorities built on trust and mutual respect, and seek to respond to any enquiries in a prompt, transparent and courteous manner.

Arranging our taxes

We will utilize available tax incentives where doing so aligns to our business purpose and is in accordance with the intended purpose of the incentives. We manage transfer pricing on an arm's length basis and follow OECD principles. We take a conservative approach to tax management and do not set up artificial structures which lack commercial purpose for the purposes of reducing our tax. We seek advice from external advisors in handling complex or challenging tax areas.

Publication date: October 1, 2021