Failure to furnish documents
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Penalties for failure to furnish transfer pricing documentation (new section 113B): impose penalties for failure to timely furnish transfer pricing documentation.
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Power to Disregards
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Authority to disregard structures in a controlled transaction (section 140A): Rule 8 of the Income Tax (Transfer Pricing) Rules 2012 would be inserted into the tax law, under new subsections that would grant authority to the Director General of Inland Revenue to disregard and recharacterise any structure adopted by a person in a controlled transaction.
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Surcharge for transfer pricing adjustment (section 140A): allow the Inland Revenue Board to impose a surcharge of not more than 5% on any transfer pricing adjustment made during all tax audit and investigation cases regardless whether the audit result in additional tax or otherwise.