Taxes Consolidation Act 1997 section 835G

Documentation and enquiries

Section 835G sets out the transfer pricing documentation requirements, including the obligation to prepare a master file and a local file in certain cases.

• A relevant person must have available records sufficient to demonstrate that profits, gains or losses from arrangements within scope of Part 35A have been computed on an arm's length basis, and must produce those records within 30 days of a written request from a Revenue officer.
• Where the relevant person is part of an MNE group with total global revenue of €250 million or more, the records must include a master file; where the MNE group's total global revenue is €50 million or more, a local file must also be prepared.
• A fixed penalty of €4,000 applies for failure to provide documentation on request, rising to €25,000 plus €100 per day of continuing failure where the relevant person is required to prepare a local file.
• A relevant person who has prepared complete and accurate documentation on time and can demonstrate reasonable efforts to comply with Part 35A will be protected from tax-geared penalties for careless behaviour in respect of any transfer pricing adjustment.