Update: The Office for Selected Economic Entities has extended the deadline for sending a questionnaire on transactions with dependents. The tax entity will thus have the opportunity to submit the completed questionnaire to the Office until 30 April 2022 instead of the original deadline of 28 March 2022.

The financial administration is increasingly focusing on transfer pricing during tax audits. This is evidenced by the fact that in recent days, the Office for Selected Economic Entities contacted several tax entities via the financial administration portal in order to complete a questionnaire on transactions they made during the 2020 tax period (or the tax period ended in 2020) with their dependent persons.

The questionnaire itself has a simple structure and requires the addition of data such as basic identification data on the taxpayer, identification data of individual dependents and, of course, the value of transactions made by the taxpayer with a particular dependent person.

Important information for taxpayers who have received such a questionnaire is that the completion of this questionnaire is on a voluntary basis. The questionnaire is for information only and has been circulated by the financial administration to find out how to combat tax cuts and tax evasion more effectively. In addition, this information is intended to help the financial administration assess the need for both legislative and non-legislative changes in the area of ​​transfer pricing.

The completed questionnaire on transactions with dependent persons should be sent to the Office for Selected Economic Entities electronically by April 30, 2022 (originally the deadline was March 28). Failure to complete the questionnaire will have no consequences for taxable persons and therefore there are no risks of non-completion of the questionnaire. At the same time, if you are one of the taxpayers to whom the questionnaire was not sent, there is no need to worry, as according to the press release, the Office for Selected Economic Entities addressed only 889 tax entities in this way.