1. Transfer Pricing Documentation
Under Section 34F(8) of the SITA, failure to prepare the required Transfer Pricing documentation constitutes an offence, and the taxpayer is liable to a fine/penalty of up to S$10,000 per offence. More specifically, a taxpayer can be liable to the fine for the following non-compliance:

• Not preparing or maintaining transfer pricing documentation based on the requirements under the rules;
• Not preparing transfer pricing documentation by the time for the making of the tax return;
• Not retaining the transfer pricing documentation for a period of 5 years;
• Not submitting the transfer pricing documentation within 30 days from written request by the IRAS; or
• Providing any documentation or information that the taxpayer knows to be false or misleading.

Moreover, Section 34E empowers the Comptroller to impose a 5% surcharge on any Transfer Pricing adjustments made by the Comptroller for non-compliance with the arm length principle after an assessment. This surcharge applies even if the taxpayer has prepared contemporaneous documentation.

2. CbyCR
Failure to file the CbyCR by due date will be imposed a penalty up to S$ 1,000. If the penalty is not paid, the person responsible for the offence may be imprisoned for up to six months. An additional penalty of up to $50 per day during will be imposed during which the offence continues after conviction.

A penalty of up to S$ 10,000 applies to taxpayer which provides false or misleading information in the CbyCR. The person responsible for the offence may be imprisoned for up to two years.