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.
Google, Starbucks, Amazon - some of the biggest businesses in the Western world have been embroiled at some point in high-stakes tax disputes over transfer pricing. Yet, international tax woes are not confined to blue-chip corporations. Any business with corporate affiliates on foreign shores could become the target of a tax audit by the CRA.