Transfer pricing laws are a fundamental consideration when dealing with multi-national organisations. Canadian transfer pricing laws dictate the price at which goods or services are traded across international borders between Canadian taxpayers, and non-residents with whom the Canadian taxpayers do not deal at arm's length. Where the Canada Revenue Agency (CRA) determines that the terms and conditions of any given transaction differ from those that would have been made between persons dealing at arm's length, CRA may adjust the amounts paid or received, for the purposes of calculating Canadian taxes. Significant penalties may be imposed if reasonable efforts were not made to determine an arm's-length price.
May 31 2009
