Fine for missing TP documentation
What is the penalty for not having TP documentation?
The situation
Failing to prepare required TP documentation by the filing due date is an offence under the Income Tax Act 1947 and carries a fine.
The law
- Secs 34D and 34F, Income Tax Act 1947: Related party transactions at arm's length; transfer pricing documentation when thresholds are met
What it means for you
Missing documentation also weakens your position if IRAS proposes an adjustment and can affect IRAS's willingness to remit the 5% surcharge. It can also limit access to mutual agreement procedures. Confirm the current fine amount on IRAS before quoting it to clients.
What to do
- Prepare documentation.
- Keep on file.
- Respond to IRAS.
- Update.
We can do this for youTransfer pricing documentation: SGD 5,000