TP Ticker – April 2018

NEw Zealand Law on True-Ups

New Zealand’s new customs law (see: https://www.parliament.nz/en/get-involved/topics/all-current-topics/new-customs-law-proposed/) introduces a “provisional value” scheme for post-importation adjustments that enables eligible importers to file true-up their initially declared provisional import value within a certain time. If the conditions are met the true-up under the provisional value scheme should not be subject to interest charge on the resulting shortfall of goods and services tax and customs duty which may be the case, if post-importation adjustments are made and reported under a voluntary disclosure. However, the provisional value scheme is only applicable for importers that met certain conditions.

Danish Court Ruling on TPD Deadlines

A decision by Denmark’s Eastern High Court (text in Danish: https://www.domstol.dk/oestrelandsret/nyheder/domsresumeer/Pages/DomMicrosoft.aspx) confirmed the traditional view of the Danish tax administration on transfer pricing documentation (“TPD”) deadlines. According to this view, while the submission of the documentation is only to be made on request by the tax administration, the study must be finalized at the time of filing the tax return for the documented year. While this reconfirms the view of the tax administration for past tax years, Danish tax law was already amended last year to remove any doubt from this requirement for future tax years. Compliant transfer pricing documentation for Danish purposes therefore must be at hand at the time of filing the corporate tax return.