Canada Can Make Alternative Argument in Transfer Pricing Case

Canada’s Tax Court is allowing its revenue agency to add new arguments in a transfer pricing dispute with Redpath Sugar Ltd.

The Canada Revenue Agency can amend its pleading to include an argument that Redpath contravened the government’s traditional transfer pricing rule alongside existing arguments that the company breached the transfer pricing recharacterization rule, Justice Joanna Hill said in a Nov. 27 order posted Thursday.

The traditional rule “addresses the same issue from a different perspective, based on the same relevant facts and transactions,” and the addition will help the court in determining the real question in ...