Canada - TPM-13: Referrals to the transfer pricing review committee

Tax Controversy & Dispute Resolution ()

The Canada Revenue Agency ("CRA") recently published TPM-13 (one in a series of Transfer Pricing Memoranda) on referrals to the Transfer Pricing Review Committee ("TPRC"). The TPRC reviews the application of penalties on transfer pricing adjustments and all recharacterizations proposed by auditors. This is the third memorandum on this topic: TPM-13 replaces TPM-07, issued in August 2005, which replaced the original TPM-01 issued in March 2003.

TPM-13 introduces some minor procedural changes but the main difference from TPM-07 is more focus on the penalty referral procedure and the role of the taxpayer in the process, including more clarity with respect to the information the taxpayer is entitled to receive.