Article 128 sets a procedural limit on the 'Corresponding Adjustment' mentioned in Article 127. Such an adjustment is not automatic; the second party in the transaction must submit a formal written request to the Tax Authority. This request must be filed within twelve months from the date the first party received their tax assessment containing the initial transfer pricing adjustment under Article 126. This strict timeline ensures that adjustments for both parties are resolved within a reasonable period and that the Authority is not forced to re-open historical tax files indefinitely.
Part 4 - Avoidance of Double Taxation
Chapter 2 - Tax Avoidance between Persons or By Entering into Transactions
Section 1 - Cases of Avoidance between Related Persons
Article 128
[GTL Notes: Application for Corresponding Adjustments]
The provisions of the preceding Article 127 shall not apply unless a written request is made to the Authority by the person with whom the transaction is made within a period not exceeding twelve months from the date of assessment on the person who made the transaction in accordance with the provisions of Article 126 of this Law.
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