Osaka Gas UK Tax Strategy
The nature of Osaka Gas UK, Ltd.’s (collectively known as “OGUK”) business activities in the UK are
relatively straightforward as is our UK tax affairs. As one of Osaka Gas (“OG”) Group entities, OGUK
seeks to manage its tax affairs in a manner that is consistent with the OG Group’s Code of Conduct,
which states for tax:
“Appropriate Payment of taxes and accounting practice: We will remain aware of the significance of paying taxes
as a corporate entity, and that we will build up adequate knowledge on taxes, and make tax payments in anappropriate manner”.

This document sets out OGUK’s strategy towards its UK taxation matters and covers all of OGUK’soperations in the UK.. This document is published in accordance with Schedule 19 Finance Act 2016.
Governance Framework
The OGUK’s Board holds responsibility for the OGUK’s tax affairs, including UK tax matters. TheOGUK’s Board has delegated the day-to-day responsibility to the General Manager (Finance,Accounting, General Affairs and Human Resources (HR)). The General Manager engages third partyadvisors to assist in:•••the management and preparation of all tax compliance activities;
providing advice on complex UK tax matters; andproviding advice on changes in UK tax legislation and how it may impact the business operationsof OGUK.

Approach to risk management
OGUK (collectively known as “We”) takes a conservative approach to tax risk management. We do notenter into transactions that are artificially led, and any tax planning undertaken, takes into account boththe letter and the spirit of the law. We are commercially led, and each transaction we undertake hascommercial and economic founding and we seek to maximise the use of incentives and tax reliefs
available to us, as intended by Parliament. Ultimately, our focus is to protect our reputation from any
negative publicity, to work within both the letter of the law and the intentions of Parliament and to ensure
we comply with all tax obligations relevant to our business.
Our key tax risks include the failure to file accurate tax returns by the appropriate statutory deadline andto make the correct payment of tax on a timely basis. We mitigate these risks by engaging third party
advisors and maintaining regular dialogue with our advisors in order to:•••assist us with ensuring we meet all our tax compliance obligations;provide us with advice on complex areas of UK tax; andbring to our attention new areas of, and changes in tax law, that are relevant to our operations inthe UK.

Acceptable level of risk
We have a prudent approach to managing tax risk and do not seek to undertake any tax planning thatis deemed to be aggressive by us or indeed by our shareholders, customers or the public at large.
Therefore, we will not consider entering into any transactions or undertaking any activities with the sole
purpose of minimising our tax liabilities.
We seek to maintain transparency within our UK tax filings and disclosures in order to minimise
uncertainty and also queries from HM Revenue and Customs (HMRC), as well as mitigating any
damage to our reputation.

Attitude toward tax planning
We have no appetite for entering into artificial tax arrangements aimed at avoiding tax. All transactions
we enter into and activities carried out in the UK must be commercially led and all transactions abovea predetermined threshold must be approved by OG.
We conduct our business and operations in a tax efficient manner in order to make use of the tax
incentives and reliefs as intended by Parliament.
Relationship with HMRC
We seek to have an open and honest relationship with HMRC and aim to be transparent with HMRC in
relation to all our tax affairs.
We seek to be seen as a responsible tax payer and maintain a good relationship with HMRC by:•••acting professionally and openly;
responding to HMRC on a timely basis when matters arise and working collaboratively to resolve
any areas of dispute; andmaking full disclosures in our tax returns.

In circumstances where an area of tax law is complicated and uncertain, we will seek to have real time
discussions with HMRC in order to gain certainty over the relevant tax treatment and to avoid thepotential for future disputes.