Transfer pricing control

In this category we describe in details the administrative and fiscal procedure for transfer pricing control. The description focuses on the methods the tax authorities use to verify the marketability of prices established in transactions between related parties. The transfer pricing audit process, as defined in the tax law, has a formalized structure and consists of several stages. It is important that taxpayers conducting related-party transactions are aware of the principles and rules that must be followed.

There is also a review of sanctions for failure to implement transfer pricing documentation. Changes to transfer pricing regulations introduced in 2019 brought new criminal and tax penalties for violating documentation obligations. These changes, including new articles of the Fiscal Penal Code (FPC), PL: Kodeksu Karnego Skarbowego (KKS), have a direct impact on taxpayers, which is crucial in terms of legal liability.

We also take the time to discuss criminal sanctions resulting from transfer pricing violations. According to the Law on Liability of Collective Entities, a collective entity can be held liable if an individual acting on its behalf violates transfer pricing regulations. This underscores the importance of understanding and complying with regulations in this area.

This category provides comprehensive information on procedures, sanctions and legal liability related to transfer pricing controls.

Sanctions for failure to complete transfer pricing documentation

The tax authorities have the right to verify the arm’s length nature of the prices set in transactions between related entities. The course of transfer pricing research by the tax authorities is specified in the tax law. The test procedure itself has a formalized form and takes place at appropriate stages. It is therefore worthwhile for taxpayers conducting transactions with related entities to […]