Transfer pricing disclosure: Stay put or take proactive measures?

[rooster59]

Transfer pricing disclosure: Stay put or take proactive measures?

By SPECIAL TO THE NATION

 

WITH THE PROPOSED transfer-pricing law now under review by the Council of State, the landscape for transfer pricing is expected to undergo a major facelift once the law is enacted.

 

One significant change would be the requirement for taxpayers to disclose their transfer-pricing information when they file their year-end tax returns. It is expected that the law will only require “partial disclosure”. Failure to disclose such information on time or submitting inaccurate information will result in a penalty of up to Bt400,000. 

 

Based on the draft law, taxpayers making related-party transactions will be required to prepare and submit documents illustrating, first, the relationship in terms of investment, management or control, whether direct or indirect, and second, the transfer-pricing method adopted for each related-party transaction.

 

Full story: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30305651

 

 

-- © Copyright The Nation 2017-02-04

[maoro2013]

Well unlikely to work. The big banks and other multinationals have been doing this for many decades. They are the big end of town and pretty much control the various governments

[Srikcir]

On 2/4/2017 at 9:33 AM, rooster59 said:

It is expected that the law will only require “partial disclosure”. Failure to disclose such information on time or submitting inaccurate information will result in a penalty of up to Bt400,000. 

Since disclosed information is only partial, how would one know the law was violated?

The answer is full disclosure and any deliberate ommission or misinformation should result in a substantial penalty.

But even that would require diligent law enforcement - not a Thai tradition.