News › Weekly Alert Article
Further Transfer Pricing Regulations Introduced
On 25 April 2012, a bill targeting so-called "no-tax-corporations" was presented to the Danish parliament. The bill contains increased fines for non-compliance with transfer pricing requirements and the introduction of a possible requirement for an auditor?s certificate on the transfer pricing documentation prepared. Taxand Denmark analyses the contents of the Bill and considers how businesses in Denmark will be affected.
Increased fines for non-compliance
The bill presented to parliament a) increases of the general level of fines in transfer pricing matters and b) introduces minimum fines on non-compliance with transfer pricing requirements.
Taxand Denmark provides a more in depth analysis of the contents of the Bill
The bill is part of the ongoing efforts aimed at multinationals conducting business in Denmark without generating taxable income of any significance. Generally, the bill introduces further restrictions on corporations.
It appears a large number of businesses have not yet directed sufficient attention to compliance with Danish transfer pricing requirements. To avoid penalities, Taxand Denmark recommends multinationals review their transfer pricing documentation and policies as a priority.