On 3 December 2018, the tax authority issued Declaration No. 202 251680-18 / 111, on the relevance of Transfer Pricing documentation in the event of a tax surcharge for providing incorrect information.
If the company has made an inaccurate task and the Tax Agency waives the company’s declaration, the Tax Agency shall, in the case of exemption from the tax surcharge, pay particular attention to the content of an established price pricing document. If the company has established sufficient documentation for the transactions that the Tax Agency’s correction relates to, it may be considered unfair to charge a full tax surcharge and, in such a case, the Tax Agency shall therefore reduce the tax surcharge by half. However, a prerequisite for exemption is that the company in its income statement has followed the pricing stated in the documentation and that the pricing in the documentation does not materially deviate from the accepted perception of a correct pricing.
If there are grounds for reducing the tax surcharge by half as a result of sufficient documentation and the company may also be deemed to have made an error assessment on a difficult issue, the Tax Agency will grant a full exemption from the tax surcharge.
