Proactive planning and preventative procedures can save big
headaches and expenses
Wthout proper policies and documentation in place, transfer
pricing audits can result in long and costly corporate headaches.
Even if the 10% pricing adjustment penalty (plus interest) is not
applied, a transfer pricing audit can be costly in terms of Part
XIII tax, remedial documentation costs, management time and
professional time.
Transfer pricing continues to be an area of great concern to the
Canada Revenue Agency (CRA). In fact, to ensure that Canada
receives its fair share of tax on any international business
conducted by related parties, the CRA employs approximately 500
designated international tax auditors. As a result, companies of
virtually any size can find their international related party
transactions under review.
