34F.—(1) This section applies to the basis period for the year of assessment 2019 and every subsequent year of assessment.
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(2) This section applies to a company, firm or trust —
(a)
if the gross revenue of the company, firm or trust derived from its trade or business for the basis period concerned is more than $10 million; or
(b)
if documentation under subsection (3) is required to be prepared for a transaction undertaken by the company, the firm, or the trustee of the trust on its behalf, in the basis period immediately before the basis period concerned.
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(3) Unless exempt by rules made under section 7, each of the following, namely:
(a)
the company;
(b)
the person making a return of the income of the firm;
(c)
the trustee of the trust,
must prepare documentation (called in this section transfer pricing documentation) that complies with subsection (5) for each transaction undertaken by the company, the firm or the trustee on behalf of the trust (as the case may be), with a related party in the basis period concerned.
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(4) In subsection (3)(b), the person making a return of the income of a firm is, in the case of a partnership, the person responsible for doing so under section 71.
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(5) The transfer pricing documentation —
(a)
must be prepared no later than the time for the making of the return of the income of the company, the firm or the trustee in relation to the trust for the year of assessment;
(b)
must contain such details as may be prescribed by rules made under section 7 of the commercial or financial relations of the parties as respects the transaction, the conditions made or imposed between them as respects the transaction, as well as an explanation as to whether those conditions are arm’s length conditions within the meaning of section 34D(1)(b); and
(c)
must comply with all other requirements as to their form and content as may be prescribed by rules made under section 7.
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(6) The person in subsection (3)(a), (b) or (c) must retain in safe custody transfer pricing documentation prepared by the person for each transaction, for a period of at least 5 years from the end of the basis period in which the transaction took place.
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(7) The Comptroller may, by written notice served on a person in subsection (3)(a), (b) or (c) personally or by registered post, require the person to furnish to the Comptroller a copy of any transfer pricing documentation prepared by the person, and the person must comply with the requirement within 30 days starting from the date the notice is served on the person.
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(8) A person who —
(a)
without reasonable excuse, fails to comply with subsection (3), (6) or (7); or
(b)
in purported compliance with subsection (7), provides to the Comptroller any documentation that the person knows to be false or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000.
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(9) The Comptroller may compound any offence under subsection (8).
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(10) In this section —
“firm” includes a partnership;
“related party” has the meaning given by section 13(16).