• Administrative penalties applicable in the event of failure to comply with the transfer pricing documentation obligations

Administrative penalties applicable in the event of failure to comply with the transfer pricing documentation obligations

19 July 2018

In our newsflash 'Approaching deadline for filing transfer pricing formalities and documentation' of 1 March 2018, we detailed the various transfer pricing documentation obligations and announced that failure to comply with these obligations will lead to administrative penalties ranging between EUR 1,250 and EUR 25,000.

The Royal Decree implementing article 445, §3 of the Belgian Income Tax Code 1992 detailing the scale of the administrative penalties and their application rules applicable in the event of failure to comply with the transfer pricing obligations has been published in the Belgian Official Gazette on July, 9th.

 

Administrative fines

The below table lists the nature of the infringements as well as the related administrative fines.

NATURE OF INFRINGEMENTS

ADMINISTRATIVE FINES

A. Infringement due to circumstances beyond the control of the taxpayer

None

B. Infringement not attributable to the existence of bad faith or the intention to avoid tax:

  • 1st infringement:
  • 2nd infringement:
  • 3rd infringement:
  • 4th infringement:
  • Following infringements:

 

 

None

1.250,00 EUR

6.250,00 EUR

12.500,00 EUR

25.000,00 EUR

C. Infringement attributable to the existence of bad faith or the intention to avoid tax (including the submission of intentionally incomplete or inaccurate declarations):

  • 1st infringement:
  • Following infringements:

 

 

 

12.500,00 EUR

25.000,00 EUR

 

Infringements

The following actions can amongst others be considered as infringements: non-filing of the documents, no timely submission of the documents, incomplete or inaccurate filing of the documents, with or without the intention to avoid tax.

 

Contact

Should you have any questions regarding this topic or would like to be assisted by one of our experts with respect to your company's transfer pricing documentation obligations, please do not hesitate to contact the BDO transfer pricing team:

 

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