Our Approach to Tax Compliance

At the Daiichi Sankyo Group, the CFO serves as the head of the Corporate Strategy & Management Division. The Finance and Accounting Department under it promotes activities in line with the “Daiichi Sankyo Group Approach to Tax” set forth as a global policy.
We ensure that tax is paid, tax returns are filed on time, and all required information is submitted to each jurisdiction in accordance with relevant laws and regulations. Furthermore, in order to provide clarity regarding our long-term tax position, we seek prior approval from tax authorities by using Advance Ruling Systems.
We also endeavour to meet evolving requirements in a timely manner by closely and constantly reviewing our tax obligations across the globe as a multinational company. In particular, we are working on the rules for the documentation of transfer pricing transactions and anti-tax haven rules under the Base Erosion Profit Shifting (BEPS) project.
In fiscal 2019, no sanction or other punitive measure was imposed on any member companies within the Group for any material violation of tax compliance.

Internal Control over Financial Reporting

Daiichi Sankyo ensures that record, assessment, and improvement are made to the status of company-level controls and important process-level controls in accordance with the internal control reporting system based on the Financial Instruments and Exchange Act, as well as in collaboration with the Internal Audit Department and accounting departments of Group companies in Japan and overseas. We also strive to improve the reliability and quality of our financial reporting by holding meetings, etc., with these accounting departments to consider and share Group accounting policies.
Furthermore, we minimize financial risks by managing foreign exchanges, interest, price fluctuations of securities held, and other risks in accordance with the basic policies set forth in the internal control system for financial reporting. With regard to cross-shareholdings, we will not hold listed stocks in principle, unless we judge that doing so will contribute to the enhancement of our corporate value. We verify the profitability of each stock and review the rationality of owning stocks as needed by taking into account the business strategy and business relationship in a comprehensive manner.