The Hong Kong Inland Revenue Department announced September 4 that it has updated its webpage on penalty policies related to international tax matters, including its policies for transfer pricing cases.
The new page includes information about penalties related to relief from double taxation, exchange of information, transfer pricing requirements, advance pricing arrangements, the mutual agreement procedure, and arbitration.
The guidance notes that taxpayer have obligations to timely and accurately file returns (including financial account information returns and country-by-country returns); retain records, and perform due diligence for financial account information. If these requirements are not complied with, the government may institute prosecution or assess additional tax, the tax department notes.
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