{"id":3669,"date":"2026-07-19T07:14:38","date_gmt":"2026-07-18T23:14:38","guid":{"rendered":"https:\/\/ehluar.com\/main\/?p=3669"},"modified":"2026-07-29T07:22:17","modified_gmt":"2026-07-28T23:22:17","slug":"reducing-compliance-risks-in-related-party-transaction-reporting","status":"publish","type":"post","link":"http:\/\/ehluar.com\/main\/2026\/07\/19\/reducing-compliance-risks-in-related-party-transaction-reporting\/","title":{"rendered":"Reducing Compliance Risks in Related Party Transaction Reporting"},"content":{"rendered":"<p>Companies with significant related party dealings should ensure that their Related Party Transactions Form is completed accurately and submitted together with their corporate income tax return.<\/p>\n<p>The reporting requirement applies where the total value of related party transactions disclosed in the financial statements exceeds SGD 15 million for the relevant financial period.<\/p>\n<h4>Key development<\/h4>\n<p>The Related Party Transactions Form forms part of the Corporate Income Tax Return, Form C, and provides the Inland Revenue Authority of Singapore with information used to assess transfer pricing risks.<\/p>\n<p>Companies that meet the reporting threshold should review the applicable IRAS guidance and confirm that the information reported in the form is consistent with their financial statements, accounting records and transfer pricing documentation.<\/p>\n<h4>Impacts on companies<\/h4>\n<ul>\n<li><strong>Greater transfer pricing scrutiny:<\/strong> Information reported in the form may be used by IRAS to identify unusual transaction patterns, material cross-border arrangements or potential inconsistencies in transfer pricing positions.<\/li>\n<li><strong>Alignment with financial reporting:<\/strong> The value and nature of related party transactions reported for tax purposes should be reconciled with the related party disclosures in the financial statements.<\/li>\n<li><strong>Tax compliance exposure:<\/strong> Incomplete, inaccurate or late submissions may result in penalties and could increase the likelihood of queries or further review by IRAS.<\/li>\n<li><strong>Audit considerations:<\/strong> External auditors may need to consider whether related party transactions have been properly identified, recorded and disclosed, particularly where the company is close to or exceeds the SGD 15 million threshold.<\/li>\n<li><strong>Governance and internal controls:<\/strong> Management should maintain clear responsibility for collecting, reviewing and approving related party information before the corporate income tax return is filed.<\/li>\n<\/ul>\n<h4>Practical issues<\/h4>\n<ul>\n<li>Identifying all related parties across complex group structures or entities under common control.<\/li>\n<li>Determining whether transactions should be aggregated when assessing the SGD 15 million reporting threshold.<\/li>\n<li>Reconciling figures between the general ledger, financial statements, tax computation and transfer pricing records.<\/li>\n<li>Ensuring that transaction categories and values are classified consistently in the form.<\/li>\n<li>Coordinating information from finance, tax, legal and overseas group entities within the filing timetable.<\/li>\n<li>Resolving differences between accounting records and transfer pricing documentation before submission.<\/li>\n<li>Retaining sufficient supporting evidence to respond to possible IRAS enquiries.<\/li>\n<\/ul>\n<h4>Action points<\/h4>\n<p>Companies should assess their reporting obligations early in the tax filing process rather than waiting until Form C is being finalised. A documented reconciliation should be prepared between the related party disclosures in the financial statements and the amounts reported in the Related Party Transactions Form.<\/p>\n<p>Management should also review the company\u2019s transfer pricing documentation, confirm that appropriate review and approval controls are in place, and address any inconsistencies before filing. Companies with complex or high-value related party arrangements should consider obtaining professional advice to reduce the risk of inaccurate reporting and regulatory penalties.<\/p>\n<p><strong>Source:<\/strong> <em>IRAS 17 July 2026<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Companies with significant related party dealings should ensure that their Related Party Transactions Form is completed accurately and submitted together with their corporate income tax return. The reporting requirement applies where the total value of related party transactions disclosed in the financial statements exceeds SGD 15 million for the relevant financial period. Key development The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3671,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7,8,6],"tags":[],"class_list":["post-3669","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","category-incometax","category-techupdates"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ehluar.com\/main\/wp-content\/uploads\/2026\/07\/ChatGPT-Image-Jul-29-2026-07_17_48-AM-e1785280900488.png?fit=950%2C634","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/3669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=3669"}],"version-history":[{"count":1,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/3669\/revisions"}],"predecessor-version":[{"id":3672,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/3669\/revisions\/3672"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media\/3671"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=3669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=3669"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=3669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}