The Canadian competent authority may accommodate a downward MAP adjustment with sufficient cooperation of the foreign authority

CRA has published the circumstances in which the Mutual Agreement Procedure can be used to deal with a requested Canadian downward transfer pricing adjustment to response to a proposed upward adjustment in the foreign jurisdiction that is acceptable there:

• the foreign competent authority provides its detailed analysis and agrees to negotiate the case; and
• the request is made within the Treaty time limits and is not contrary to the policy of the Canadian competent authority.

If these requirements are not satisfied, the Canadian taxpayer can always try to fit within TPM-03.

Neal Armstrong.  Summary of 20 December 2013 Update - Competent Authority Services Division under s. 247(10).