Revised CRA Policy Heralds Focus On Contemporaneous Transfer Pricing Documentation

CRA released an updated transfer pricing memorandum, TPM-05R, Requests for Contemporaneous Documentation, in March, which describes the procedural aspects of transfer pricing documentation requirements in substantially more detail than its predecessor. The new policy document does not contain large substantive changes but its focus on precise rules signifies an increased emphasis on strict adherence to those rules.

For example, the policy discusses at length the three-month deadline for submitting contemporaneous documentation, setting out precisely how to calculate the deadline in various circumstances, which are generally based on anniversary dates, regardless of short or long months. The policy also makes it clear that taxpayers must deliver any required information to CRA, as opposed to merely making it available, and clarifies taxpayers’ obligations in the event that requested information has previously been provided to CRA. In the latter case, taxpayers do not