Canadian Firms Advised to Expand Transfer Pricing Analysis

Tax pros in Canada are advising clients to expand the scope and depth of their transfer pricing analyses in anticipation of tougher audits from the country’s tax authority.

While most major transfer pricing reports won’t be due until next year, the scale of changes and tighter deadlines brought by a wide-ranging overhaul of Canada’s rules means companies need to be compiling information in accordance with the new rules now, advisers say.

“The transfer pricing report is the first opportunity that a taxpayer has to persuade the CRA that their transfer pricing satisfies the arm’s length principle, so it’s important that ...