Transfer Pricing Disputes In Vancouver & Western Canada
Transfer pricing disputes bring into question how goods and services are priced between related companies in transactions between affiliates. Canada Revenue Agency has trained auditors who want to be satisfied that the reported prices are “fair” based on:
- Services provided and skills deployed by those providing them
- Goods supplied
- Intangibles and their development, enhancement, maintenance, protection and exploitation
The lawyers of PMR Law assist companies throughout British Columbia and Alberta with providing a clear and accurate analysis of the allocation of economic activity, which is the guiding principle of transfer pricing.
Fresh Perspectives For Vancouver Businesses
A common challenge for Vancouver clients facing transfer pricing disputes is the issue of tax structures. When CRA looks at a tax structure, they want to look through the form of the paperwork to the underlying economic activity of the Canadian and non-Canadian entities. They want to know who or what the value driver is, and whether the declared income fairly captures the extent of Canadian contributions.
Our firm has the experience to provide a fresh perspective on the transfer pricing for the goods and services and a thorough analysis of the data relating to similar transactions to the ones being questioned. We offer legal counsel on issues such as:
- The strength of our client’s current tax position
- How to defend an audit conducted by CRA on transfer prices
- Whether clients should file a Notice of Objection to a reassessment
- Conducting a confidential review of the quality of the transfer pricing under legal privilege over all of the opinions expressed
Representation In Tax Court Of Canada
PMR Law has successfully defended taxpayer clients in Tax Court of Canada. If CRA reassesses your transfer prices by seeking an adjustment, we can deploy — for your benefit — the resources you need to effectively communicate the strengths of your transfer pricing.
We combine our knowledge of transfer pricing with our experience in transfer pricing litigation in Tax Court of Canada. PMR Law uses cutting edge litigation support software in effective ways to properly and efficiently manage the relevant documents. This makes our advisory services effective and keeps costs reasonable.
Organization For Economic Co-Operation And Development (OECD)
PMR Law made a presentation to the OECD with respect to the underlying economic value of ownership of intangibles. The firm is pleased to note that the revisions to guidance, issued by that organization, did provide some recognition of the importance of ownership, but tied the entitlement to profits for ownership to functions performed, assets used and risks assumed.
This is truly a new development in which you must align economic activity with the claim to profits. This change must be carefully considered by taxpayers and fully understood by advisors.
Call Us For A Meeting Today
Based in Calgary, Alberta, the lawyers of PMR Law provide solutions for clients in Vancouver and throughout British Columbia and Western Canada.
Contact Shaun T. MacIsaac, Q.C. of PMR law at (403) 457-9600 or at [email protected].