Failure to comply with said regulations to timely prepare the mandatory documentation will entail severe penalties. Also, the provision of uncomplete or wrongful information will be heavily fined.
Even though the Tax Authorities were not to eventually adjust the valuation applied, the lack of the mandatory documentation may be fined anyway, the penalty ranging from 1,000 euros to 10,000 euros, respectively, for each data or set of data omitted, with the limit of the lower the lower of either 10% of the total of operations or 1% of the turnover of the given FY.
Transfer pricing documentation must be kept up-to-date, for all years open to tax audit, and made available contemporaneously to the due date to file the relevant CIT declaration. For instance, for those companies closing on December 31st , 2017, updated TP documentation for FY 2017 will have to be available from next 25th July 2018, Time is running.