Tp penalties 2015

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Penalty Regime - Criteria

The penalties could be imposed according to the following criteria:

• When the assessment does not produce a tax adjustment, penalty amounts to 1,000 Euros per “data”, or 10,000 Euros per group of “data” omitted, inaccurate or false (“data” and “group of data” are defined in sections 19.3. and 20.4 of the Regulations)

• When the tax authorities adjust the pricing of a transaction and the documentation requiremets are not fully complied (or the intercompany prices are not the arm’s length prices as per the TP documentation), the penalty amounts to 10% of the gross adjustment, with a minimum of at twice penalty calculated as per the previous point

• When the TP documentation requirements are fully complied and the intercompany prices are consistent with the TP documentation, no penalty arises in case of a TPadjustment made by the Tax Authorities


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TP Documentation on the Corporate GroupPenalties for non-compliance

Documentation on the Group (Art.19 Regs.).

Penalties regarding non-compliance, inaccurate, incomplete or false information

a) Group’s organizational, legal and operational structure

10,000€ (considered as a “group of data”)

b) Identification of the various entities which form part of the group and perform transactions that affect the taxpayer

1,000€ per fact (each company’s data considered as a “fact”)

c) Inventory of related party transactions. 10,000€ (group of data)

d) Functional Analysis. 10,000€ (group of data)

e) Intangibles: List of intangibles that affect the related transactions of the taxpayer and amount or consideration derived from their use.

1,000€ (the information on each intangible and amount is considered as a “fact”)

f) A description of the group’s transfer pricing policy

10,000€ (group of data)

g) A list of the cost sharing and service agreements with related parties that transactions of the taxpayer.

1,000€ per fact (the information on each agreement is considered as a “fact”).

h) A list of the advance pricing agreement and mutual agreement procedures.

1,000€ per fact (the information on each agreement is considered as a “fact”).

i) The group’s notes to the financial statements or, if not, an equivalent annual report.



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TP Documentation on the Corporate GroupPenalties for non-compliance

Documentation on the Taxpayer(Art. 20 Regs.)

Penalties regarding non-compliance, inaccurate, incomplete or false information

a) Company name, tax domicile, VAT number and detailed description of the nature, characteristics and amount.

1,000€ (each company’s data considered as a “data”)

b) Comparability analysis. 10,000€ (group of data)

c) Properly selected transfer pricing method. 10,000€ (group of data)

d) Allocation criteria for services provided to several beneficiaries, corresponding agreements, if any, and cost sharing agreements.


e) Any other information used by the taxpayer to assess its related party transactions.


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Tp penalties 2015