Why Tax Appeals Are Important
Transfer pricing disputes typically involve a disagreement over the amount of the price paid for goods and services provided by Canadian taxpayers. When the issue involves an allocation of profits between a high tax jurisdiction, such as Canada, and a low tax jurisdiction, CRA is very concerned about whether economic activity in Canada is fairly reflected in profits subject to taxation. Tax structures without substance in the way of economic activity are no longer acceptable.
PMR Law can assist in providing the best communication tools available to bring to the table reasonable explanations for decisions that can be defended. Where reasonable positions are presented and not accepted, PMR Law can file tax appeals to Tax Court of Canada to obtain reasonable results.
Filing A Tax Appeal
The decision to file a tax appeal is an important one. PMR Law invites taxpayers to engage our firm to decide whether a taxpayer’s arguments are worthy of support, or whether the reassessment is likely to be upheld.
Proper due diligence by the taxpayer’s board consists of hiring new advisors to review what was done, and whether the transfer price reported was truly an arm’s length price.
PMR Law efficiently keeps the process moving by filing tax appeals, gathering the material facts, and all supplementary external pricing information and opinions needed, and then advocating reasonable positions at every stage in a tax dispute. Our firm advises clients on whether a tax appeal has merit after an initial analysis of the correctness of the tax filing position.
Competent Authority And Notice of Objection
Competent authority is a negotiation between tax authorities. This is available where the Canadian tax authority agrees to argue your case against another tax authority. The competent authority process is not always available. In many cases, the results are not binding.
In a proper case, PMR Law will recommend that other alternatives will waste time and money, and that the court process should be undertaken to Tax Court of Canada.
Filing a tax appeal at an early stage protects clients as it avoids delays in the appeal process. PMR Law has experience effectively drafting and filing a Notice of Objection, supporting a company’s tax position, and justifying the reasons for objection.
Combined Corporate, Tax Law And Litigation Experience
Creating effective advocacy of a taxpayer’s transfer price requires a strategy that combines transfer pricing, international tax law and litigation experience. The ability to work with economists, valuators and accountants is vital.
The lawyers of PMR Law have represented clients in Tax Court of Canada and won significant cases. The firm has the experience you need to put forward your best case for defence of transfer prices.