Pillar Two Penalties: Why Each Jurisdiction Needs Its Own Checklist

For each jurisdiction, list registration, notification, return accuracy, late filing, payment, records and responses to information requests. Identify the responsible entity and relevant fiscal period. Only then add the legal consequence. A table showing a country and one large number can be actively misleading because it hides different offences, calculation bases and relief. State whether a consequence is administrative, a surcharge, interest or a court-imposed sanction. Keep a link to the current official source and record any point requiring local confirmation before management relies on the estimate.

Singapore’s IRAS describes a possible 10% surcharge on applicable DTT and MTT for failure to notify registration liability. Indonesia’s DJP explains a different approach linking certain failures to general administration law and identifying transition provisions for administrative sanctions. These illustrate why one country’s headline should not be transplanted elsewhere. A fictional group comparing both locations should examine the actual failures and periods before calculating a provision. It should not simply apply the larger percentage to every subsidiary, or assume that relief described by one authority excuses a failure governed by another.

Ask local advisers which facts change the result: an inaccurate figure, omitted information, late submission, unpaid amount or deliberate conduct. Identify whether reasonable excuse, discretion, remission or transition provisions may be relevant. The existence of a maximum does not establish that it will be imposed; equally, an expectation of cooperative treatment is not a legal exemption. Explain uncertainty transparently to management and retain the advice. Do not combine tax, interest and penalties in one unexplained estimate, because the assumptions and accounting treatment may need separate consideration.

Assign an owner to refresh sources when legislation, guidance or facts change. Keep the record connected to the deadline calendar and incident log. If a failure is discovered, use the checklist to identify questions for local counsel or tax advisers rather than treating it as a substitute for their assessment. Bring us the jurisdictions, obligations and existing penalty assumptions if the group has accumulated incompatible country summaries. We can help organise a consistent comparison and coordinate confirmation. The value lies in identifying the right legal question and evidence, not in publishing the most alarming possible fine.