Transfer Pricing & APA Considerations During An Economic Disruption

At times like this, when health and safety are at the forefront of everyone's mind, tax planning, including transfer pricing, understandably, is generally put aside. However, in light of the potential economic downturn arising from the COVID-19 pandemic, it would be prudent for Canadian companies to consider transfer pricing matters at this time.  A review of your current tax and transfer pricing structuring could reveal options for both temporary and permanent improvements in cash flow and tax savings.

As most corporations during these times must be conscientious regarding unnecessary or non-urgent business expenditures, simple practices can now prove cost effective.  Companies can arrange an internal meeting within their tax group, or an informal call with its transfer pricing service provider, to look at ways of navigating through unprecedented challenges.