73. Information and documents to be kept and maintained under section 107E

73. Information and documents to be kept and maintained under section 107E

(1) Every person who has entered into an international transaction shall keep and maintain the following information and documents, namely:—

(a) ownership profile of the multinational group in which the assessee enterprise is a member. Profile should include information on groups global organisational structure, showing in details the name, location, legal status and country of tax residence of the enterprises in the group with whom the assessee enterprise have international transactions, and ownership linkages among them;

(b) business profile of the group including the line of business, industry dynamics, and market and economic environment in which the group operates, and the business model and strategies of past, present and future;

(c) brief business profiles of each of the member of the group;

(d) information on the business relationship (purchase and sells of goods, provision of services, use of assets and intangibles etc.) among the members of the groups;

(e) consolidated financial statement of the group;

(f) profile of the assessee enterprise and each of the associated enterprises operating in Bangladesh, including tax and VAT registration number, IRC & ERC numbers, address, locations of activity centers etc;

(g) business profile of the assessee enterprise and each of the associated enterprises operating in Bangladesh including the line of business, industry dynamics, and market and economic environment in which the assessee enterprise operates, and the business model and strategies of past, present and future of the assessee enterprise;

(h) brief description of the functions performed, risks assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transaction;

(i) financial statements of the assessee enterprise and each of the associated enterprises operating in Bangladesh;

(j) information on economic and market analyses, forecasts, budgets or any other financial estimates prepared by the assessee enterprise and each of the associated enterprises operating in Bangladesh either for whole business or for any segment or line of product;

(k) details of all transactions with the associated enterprises;

(l) contracts, terms and agreements of the transactions with associated enterprises;

(m) segment financial statements with respect to the transactions with associated enterprises;

(n)the manner of choosing tested party including the rationale for the choice;

(o) details of comparables including the manner in which the comparables have been screened and the adjustment made to achieve comparability;

¹[(q) the list of database utilized;]

(r) information on transfer pricing method chosen considered for determining the arm’s length price including the justification stating why the method is considered most appropriate;

(s) records showing the calculations and workings regarding the determination of the arm’s length price/margin including the explanation of any assumption;

(t) any assumption, policy and price negotiations which may have an effect on the determination of the arm’s length price;

(u) information on any adjustment made to transfer prices to align them with arm’s length prices determined under these rules and consequent adjustment made to the total income for tax purposes;

(v) any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the arm’s length price.

(2) Nothing contained in sub-rule (1) shall apply in a case where the aggregate value, as recorded in the books of account, of international transactions entered into by the assessee in the income year does not exceed three crore taka.

(3) The information specified in sub-rule (1) shall be supported by authentic documents, which may include the following :

(a) official publications, reports, studies and data bases from the Government of the country of residence of the associated enterprise, or of any other country;

(b) reports of market research studies carried out and technical publications brought out by institutions of national or international repute;

(c) price publications including stock exchange and commodity market quotations;

(d) published accounts and financial statements relating to the business affairs of the associated enterprises;

(e) agreements and contracts entered into with associated enterprises or with unrelated enterprises in respect of transactions similar to the international transactions;

(f) letters and other correspondence documenting any terms negotiated between the assessee and the associated enterprise;

(g) documents normally issued in connection with various transactions under the accounting practices followed.

(4) The information and documents specified in sub-rules (1) and (2) shall be kept and maintained for a period of eight years from the end of the relevant assessment year.]^{Added F. A. 2012}

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¹ Ins. by S.R.O.No.192-L/IT/2015,dt. 30-06-2015

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Nowshad Amin Chowdhury