In our last post, we looked at the basic concept of transfer pricing. Any business that buys and sells to a foreign entity under its own corporate group may, at some point, be called upon by the CRA to defend the transfer price for those international transactions.
If that price doesn't match up with an amount that unrelated companies would normally agree to - the arm's length price - a transfer price dispute could ignite. Is your business at risk? Is it possible to successfully face the CRA and ward off increased taxation and penalties?