On December 13, 2013 the Tax Court of Canada (TCC) made its decision in McKesson Canada Corporation v Her Majesty the Queen. The primary issue was a transfer pricing adjustment made by the Canada Revenue Agency (CRA) to McKesson Canada Corporation’s (MCC’s) income under paragraphs 247(2)(a) and (c) of the Income Tax Act (the Act). The adjustment was related to trade receivables factoring transactions involving MCC and its immediate parent company MIH, a company resident in Luxembourg, during the 2003 tax year. The secondary issue was MCC’s liability under the Act for its failure to withhold and remit to CRA an amount equal to the Part XIII non-resident withholding tax resulting from the disallowed amounts paid by MCC to MIH. The Court dismissed the appeal with respect to both issues and made a number of comments related to transfer pricing that are of general interest to taxpayers. MCC has 90 days to appeal the decision.