Transfer Pricing

Transfer Pricing

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We have already explained what Transfer pricing are previously, and today we want to underline that it is necessary to know how control agencies act against those companies which don’t respect their rules.

First of all, we have to consider the regulatory dispersion. OECD rules are different from Spanish ones whose compliance is controlled bySpanish Tax Administration.

OECD politics advise national bodies to be reticent to punish companies about transfers pricing, considering that companies have to transfer all kinds of goods and services, and OECD stands up for respecting the principle “Presumption of innocence”. In accordance with it, its sanctions pursue prevent further breaches. This way, those companies that meet their requirements have some benefits, for example, submitting documents to authorities will be cheaper.

On the other hand, Spanish Tax Administration gets openly separated from these parameters, penalizing those taxpayers that don’t accomplish its excessive requirements.

Which penalties are contained in Spanish law about transfer pricing?

They are in the Act 27/2014, of 27th November, about corporation tax, whose article 18.13 states that if a company don’t provide the administration with the necessary paperwork, this paperwork is incomplete or it has any false datum, the company is committing a grave infraction.

This inflexibility makes important to have a good advice if you need to accomplish related party transactions. In Evolutiza Lawyers & Tax Advisors, we are specialised in transfer pricing. Don’t hesitate to contact us.

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