Companies with employees who visit or reside in the US and multinational groups have tax authorities from both sides of the border playing a tug-of-war to tax the same dollars of corporate profit. Though there is a tax treaty in place between Canada and the US to ensure that the same dollar is only taxed once, there is still some work to be done to reach this result.
Similarly, any expansion into Europe or emerging markets comes with the same issues and the workload starts to pile up.
Transfer pricing is the term used to describe the pricing of transactions that take place between related companies in different countries which are part of the same multinational group. It also applies to Canadian companies with no more than a taxable presence in other countries. Due to the nature of these transactions, the tax authorities require companies to make sure that the taxable profit in each country is just the same as it would be if the companies were independent.
In this presentation we will highlight real issues you may face when working in the cross border/international business field. PwC Canada's Western Canadian transfer pricing leaders lay out a solid path to compliance and single taxation to help you find the right solution for your company.