New

Subsection 247(1)

Transaction

See Also

Cameco Corporation v. The Queen, 2018 TCC 195, aff'd 2020 FCA 112

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Words and Phrases
arrangement event
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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) having a Swiss/Lux subsidiary enter into long-term purchase contracts at a somewhat fixed price with third parties and the taxpayer did not engage s. 247(2) 708
Tax Topics - General Concepts - Sham transactions that were not factually misrepresented were not a sham 254
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) "series" concept narrowly interpreted to permit comparison with arm's length transactions 40

Subsection 247(2)

Cases

AgraCity Ltd v. Canada, 2016 DTC 5006 [at 6525], 2015 FCA 288

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Canada v. GlaxoSmithKline Inc., 2012 DTC 5147 [at 7338], 2012 SCC 52, [2012] 3 S.C.R. 3

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Canada v. General Electric Capital Canada Inc., 2011 DTC 5011 [at 5558], 2010 FCA 344

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See Also

Cameco Corporation v. The Queen, 2018 TCC 195, aff'd 2020 FCA 112

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Tax Topics - General Concepts - Sham transactions that were not factually misrepresented were not a sham 254
Tax Topics - Income Tax Act - Section 248 - Subsection 248(10) "series" concept narrowly interpreted to permit comparison with arm's length transactions 40
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(1) - Transaction meaning of "arrangement" and "event" 153

Alberta v ENMAX Energy Corporation, 2018 ABCA 147

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Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) - Subparagraph 20(1)(c)(i) interest on a loan from a tax-exempt parent should be at an arm’s length rate reflecting implicit parental credit support 470
Tax Topics - General Concepts - Tax Avoidance right to structure affairs to reduce taxes (or, here, payments in lieu) inapplicable where consumer assistance purpose defeated 172
Tax Topics - Statutory Interpretation - Hansard, explanatory notes, etc. purpose inferred in part from Legislative Assembly statement of Minister 81
Tax Topics - Income Tax Act - Section 67 test of whether the amount was objectively reasonable 229

Chevron Australia Holdings Pty Ltd v Commissioner of Taxation, [2017] FCAFC 62

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Tax Topics - Treaties - Income Tax Conventions - Article 9 cross-border loan interest improperly reflected lack of security 367
Tax Topics - Statutory Interpretation - Retroactivity/Retrospectivity retroactive tax was constitutional if it could be judicially challenged based on the facts 448

Sifto Canada Corp. v. The Queen, 2017 TCC 37

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Tax Topics - Treaties - Income Tax Conventions - Article 9 agreement with the U.S. competent authority re a VDP-adjusted transfer price binds CRA even if it had not yet audited the taxpayer 593
Tax Topics - Income Tax Act - Section 115.1 - Subsection 115.1(1) 115.1 not germane to subsequent inconsistent CRA assessment 201
Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) MAP agreement concurred in by taxpayer was binding on the Minister as it was not “indefensible” 265

Suncor Energy Inc. v. The Queen, 2014-4179(IT)G

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ENMAX Energy Corp. v. Alberta, 2016 ABQB 334, rev'd 2018 ABCA 147

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Tax Topics - Income Tax Act - Section 20 - Subsection 20(1) - Paragraph 20(1)(c) 11.5% interest rate on unsecured intercompany note was reasonable under s. 20(1)(c) notwithstanding that this exceeded an arm’s length rate of around 8.5% 483
Tax Topics - Income Tax Act - Section 67 Gabco test implies a range 110

Re Nortel Networks Corp., 2014 ONSC 6973

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Tax Topics - Treaties - Income Tax Conventions - Article 9 provision, under multinational agreement for residual profit split method, for unilateral bearing of restructuring costs, represented appropriate ex ante risk allocation 446

AgraCity Ltd. v. The Queen, docket 2014-1537

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Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) Reply must explain specific bases on which a penalty was imposed 240
Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 53 argument inconsistent with assumed facts struck from pleadings, but might be reintroduced at trial as an alternative argument 168

McKesson Canada Corporation v. The Queen, 2014 DTC 1197 [at 3749], 2014 TCC 266

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Marzen Artistic Aluminum Ltd. v. The Queen, 2014 DTC 1145 [at 3433], 2014 TCC 194, aff'd 2016 DTC 5018 [at 6600], 2016 FCA 34

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) no explanation of derivation of pricing 111

McKesson Canada Corporation v. The Queen, 2014 DTC 1040 [at 2723], 2013 TCC 404

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Tax Topics - General Concepts - Evidence expert reports without testimony 56
Tax Topics - General Concepts - Purpose/Intention tax purpose v. commercial result 92
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) advocacy 3rd-party report not read by taxpayer 163
Tax Topics - Treaties - Income Tax Conventions - Article 9 5-year limitation did not apply to secondary Part XIII assessment 206

Burlington Resources Finance Company v. The Queen, 2013 DTC 1190, 2013 TCC 231

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Alberta Printed Circuits Ltd. v. The Queen, 2011 DTC 1177 [at 967], 2011 TCC 232

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Ford Motor Co. of Canada, Ltd. v. Ontario Municipal Employees Retirement Board, 2004 DTC 6224 (Ont. Sup. Ct. of J.)

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Safety Boss Ltd. v. The Queen, 2000 DTC 1767 (TCC)

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Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) conferral on corp increasing its value is benefit conferred on shareholder 149
Tax Topics - Statutory Interpretation - Interpretation Bulletins, etc. 53

Administrative Policy

27 October 2020 CTF Roundtable, Q.12

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28 May 2019 Internal T.I. 2018-0772971I7 - Interaction between sections 94, 17, 247

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Tax Topics - Income Tax Act - Section 94 - Subsection 94(2) - Paragraph 94(2)(f) failure to charge for services rendered by a Canco to a NR sub of a NR trust tainted the NR trust under s. 94(2) 258
Tax Topics - Income Tax Act - Section 94 - Subsection 94(2) - Paragraph 94(2)(a) NIB loan by a Canco to a NR sub of a NR trust tainted the NR trust under s. 94(2) 222
Tax Topics - Income Tax Act - Section 17 - Subsection 17(1) triggering of s. 94(2)(a) by interest-free loan to the sub of a non-resident trust was independent of the application of s. 17 to the loan 250

26 February 2019 Toronto CRA & Tax Professionals Seminar

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(4) - Paragraph 247(4)(a) penalties typically imposed where missing or unsubstantiated analysis 97

13 December 2018 Wheaton Precious Metals Press Release

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2018 Ruling 2017-0729431R3 - Transfer Pricing Adjustment and Earnings

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Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(2) - Paragraph 5907(2)(f) fictional transfer pricing adjustments did not affect the exempt surplus calculation (other than for the foreign taxes adjustment) 543
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Net Earnings - Paragraph (a) MAP downward adjustment to foreign income taxes increased net earnings 253

27 November 2018 CTF Roundtable Q. 4, 2018-0779931C6 - OECD TP Guidelines

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Alexandra MacLean, "CRA Audits of Large Corporations - The view from ILBD" under Responses to recent adverse decisions – Cameco, 27 November 27 2018 CTF Annual Conference.

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27 October 2017 Internal T.I. 2017-0694231I7 - Subsection 247(2), surplus, and FAPI

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Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(c) sale of goods at undervalue to sub does not imply a contribution of capital 174
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(2) effect on surplus balances of foreign transfer-pricing adjustment might be reversed under Reg. 5907(2) 151
Tax Topics - Income Tax Regulations - Regulation 5907 - Subsection 5907(1) - Earnings - Paragraph (a) surplus could be adjusted by transfer-pricing adjustment 134

26 April 2017 IFA Roundtable Q. 2, 2017-0691191C6 - Subsection 247(2) and FAPI

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Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(f) s. 247(2) applies for FAPI purposes 103

14 September 2016 Internal T.I. 2016-0631631I7 - Transfer pricing capital adjustment

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(3) no statute-barring applies to initial assessments of transfer-pricing penalties 326
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(11) s. 152(4) limits apply to additional s. 247(3) assessments 161

16 November 2016 Toronto Centre Canada Revenue Agency & Tax Professionals Seminar on International Tax Issues

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2015 Ruling 2014-0542411R3 - Carrying on business in Canada and PE

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Tax Topics - Treaties - Income Tax Conventions - Article 5 PE in Canada of ForCo avoided through seconding employees to its Cdn sister and meeting in Canada up to 90 days annually only offsite 533
Tax Topics - Income Tax Regulations - Regulation 102 payroll reimbursement payments under employee secondment arrangement not subject to Reg. 105 205
Tax Topics - Income Tax Act - Section 5 - Subsection 5(1) seconded employees respected as employees notwithstanding their payroll is paid by (and reimbursed to) ForCo 59

TPM-17 “The Impact of Government Assistance on Transfer Pricing” 2 March 2016

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23 February 2016 Toronto Centre Tax Professionals Seminar under “Perception that BEPS is Being Applied”

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1 September 2015 Internal T.I. 2013-0507381I7 - Transfer pricing adjustments and gross revenue

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Tax Topics - Income Tax Regulations - Regulation 402 - Subsection 402(3) s. 247(2) increases to proceeds (but not downward adjustments to purchase prices) increase gross revenue for provincial allocation purposes 233
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Gross Revenue sales (but not purchases) transfer pricing adjustments to gross revenue 45

TPM-16 "Role of Multiple Year Data in Transfer Pricing Analyses" 29 January 29 2015

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TPM-15 "Intra-group services and section 247 of the Income Tax Act" 29 January 2015

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3 October 2014 Internal T.I. 2014-0532051I7 - Rent and Part XIII Tax

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Tax Topics - Income Tax Act - Section 212 - Subsection 212(1) - Paragraph 212(1)(d) non-commercial arrangement not subject to s. 247 but is subject to Part XIII/property taxes included in rent/no Part XII tax on imputed rent 247
Tax Topics - Income Tax Act - Section 3 - Paragraph 3(a) - Business Source/Reasonable Expectation of Profit rents from personal rental property not required to be reported 112

10 October 2014 APFF Roundtable Q. 26, 2014-0538201C6 F - 2014 APFF Roundtable, Q. 26 - Cost of property

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Tax Topics - General Concepts - Fair Market Value - Shares definition of FMV, which may differ from the s. 247 arm's length price 182
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(3) - Subparagraph 247(3)(a) - Subparagraph 247(3)(a)(iii) general requirement for penalty elimination re transfer pricing capital setoff adjustment 146

15 November 2013 Internal T.I. 2013-0478621I7 F - Transfer of intangibles - TP adjustments

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Tax Topics - Income Tax Act - Section 56 - Subsection 56(2) secondary adjustment re group sale with Canco not charging for intangibles 248
Tax Topics - Income Tax Act - Section 69 - Subsection 69(4) s. 69(4) inapplicable where grandchild Canco undercharges for asset sale, enhancing sales proceeds received by ultimate U.S. parent 176

31 October 2012 TPM-14 "2010 Update of the OECD Transfer Pricing Guidelines"

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5 October 2012 Roundtable, 2012-0454201C6 F - Nouvelle Circulaire - Prix transfert international

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5 October 2012 Roundtable, 2012-0451241C6 F - Benefit conferred on a NR shareholder by a NR corp

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Tax Topics - Income Tax Act - Section 214 - Subsection 214(3) - Paragraph 214(3)(a) gratuitous use by NR shareholder of Canadian property of the NR corporation produces a s. 214(3)(a) deemed dividend 152
Tax Topics - Income Tax Act - Section 15 - Subsection 15(7) s. 15(7) assists in determining that s. 15 can apply to the NR shareholder of a NR corporation gratuitously using the corporation’s Canadian property 67

5 October 2012 Roundtable, 2012-0454221C6 F - Allocation des risques et contrôle

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6 December 2011 Roundtable, 2011-0427301C6 - 2011 TEI-CRA Liaison Meeting: Qu.11

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6 December 2011 TEI-CRA Liason Meeting Roundtable Q. 6, 2011-0427261C6 - 2011 TEI-CRA Liaison Meeting: Qu. 6

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6 December 2011 TEI-CRA Liason Meeting Roundtable Q. 10, 2011-0427291C6 - 2011 TEI-CRA Liaison Meeting: Qu. 10

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6 December 2011 TEI-CRA Liason Meeting Roundtable Q. 12, 2011-0427311C6 - 2011 TEI-CRA Liaison Meeting: Qu.12

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 Transfer Pricing Memorandum TPM-06,  “Bundled Transactions” 16 May 2005

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Tax Topics - Treaties - Income Tax Conventions - Article 12 distinction between know-how and services provision 215

2 December 1999 Internal T.I. 1999-0010070 - Guarantee fee

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Articles

Christopher J. Montes, Siobhan A.M. Goguen, "Recharacterization of Transactions Under Section 247: Still an Exceptional Approach", 2018 Conference Report (Canadian Tax Foundation), 21:1-25

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Tax Topics - Treaties - Income Tax Conventions - Article 9 2017 OECD transfer-pricing guidelines mandate an “accurate-delineation approach” that is contrary to s. 247(2) 256

Byron Beswick, "Transfer Pricing and Transactions Between Foreign Entities ", Canadian Tax Journal, (2019) 67:1, 187-208

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Words and Phrases
taxpayer

Adrian Tan, "The Emergence of the Profit-Split Method", Canadian Tax Highlights, Vol. 27, No. 2, February 2019, p. 1

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Matias Milet, Jennifer Horton, "The Canada Revenue Agency’s Interpretation of the 2017 OECD Transfer Pricing Guidelines", International Tax (Wolters Kluwer CCH), No. 103, December 2018, p.10

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Tax Topics - Treaties - Income Tax Conventions - Article 9 287

Nathan Boidman, "Cameco and Cash-Boxes", 19 December 10 2018

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Brian Mustard, Sam Maruca, Charles Thériault, Richard Tremblay, "Transfer Pricing: What Are 'Reasonable Efforts,' and When should Penalties Apply?", Canadian Tax Foundation, 2015 Conference Report, 32:1-33

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Justice Marshall Rothstein, "An Overview of the Supreme Court of Canada", Bulletin for International Taxation (IBFD), January/February 2016, p. 20.

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Derek G. Alty, Brian M. Studniberg, "The Corporate Capital Structure: Thin Capitalization and the ‘Recharacterization' Rules in Paragraphs 247(2)(b) and (d)", Canadian Tax Journal, (2014) 62:4, 1159-1202.

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Tax Topics - Treaties - Income Tax Conventions - Article 9 770

Ilana Ludwin, "Application of the Transactional Profit Split Method in Canada", Tax Management International Journal, 2015, p. 98.

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Mark D. Brender, Marc Richardson Arnould, Patrick Marley, "Cross-Border Cash-Pooling Arrangements Involving Canadian Subsidiaries: A Technical Minefield", Tax Management International Journal, 2014, p. 345.

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Tax Topics - Income Tax Act - Section 17 - Subsection 17(7) 256

J. Harold McClure, "Evaluating Whether a Distribution Affiliate Pays Arm's-Length Prices for Mining Products", Journal of International Taxation, July 2014, p. 33.

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Jules Lewy, Joel A. Nitikman, "Important Developments in Canadian Transfer Pricing", CCH Tax Topics, Number 2185, January 23, 2014, p. 1

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Brian Bloom, François Vincent, "Canada's (Two) Transfer-Pricing Rules: A Tax Policy and Legal Analysis", 2011 CTF Conference Report, 20:1-40.

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Robert Couzin, "Policy Forum: The End of Transfer Pricing?", Canadian Tax Journal, (2013) 61:1, 159-78, at 172: He compares the approach to recharacterization in s. 247 of the Act and by the OECD:

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Robert Feinschreiber, Margaret Kent, "OECD Transfer Pricing Guidelines and the 'Highly Uncertain' Valuation of Intangibles", Journal of International Taxation, February 2012, p. 47

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Richard G. Tremblay, "Canadian Transfer Pricing - The Arm's-Length Principle - Filling in the Blanks - Does an Arm's Length Price Ever Differ From Fair Market Value?", Tax Management International Journal, 2011, p. 599

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Johan Mayles, "CRA to Adopt OECD's Revised Transfer Pricing Guidelines", CCH Tax Topics, No. 2036, 17 March 2011, p.1

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Danny Oosterhoff, Bo Wingerter, "The New OECD Guidelines: The Good, the Bad and the Ugly", International Transfer Pricing Journal, Vol. 18, No. 2, March/April 2011, p. 103.

Janice McCart, "Repatriation in Lieu of Secondary Adjustments", International Transfer Pricing Journal, Vol. 17, No. 1, January/February 2010, p. 65

Giammarco, Cottani, "OAC Discussion Draft on Transfer Pricing Aspects of Business Restructurings", Summary of Business Comments and Issues for Discussion", International Transfer Pricing Journal, Vol. 16, No. 4, 2009, p. 231.

Jennifer Rhee, "Unmasking 'Management Fees' - What's in a Name?", CCH Tax Topics, No. 1897, July 17, 2008, p. 1.

Brian Bloom, "Paragraph 247(2)(b) Demystified", CCH Tax Topics, 11 May 2006, No. 1783, p. 1.

Muris Dujsic, Matthew Billings, "Establishing Interest Rates in Intercompany Contacts", International Transfer Pricing Journal, Vol. 11, No. 6, November/December 2004, p. 247.

Todd Miller, Ryan Morris, "Canadian Subsidiary Guarantees for Foreign Parent Borrowings", Tax Notes International Vol. 34, No. 1, 5 April 2004, p. 63.

Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 212 - Subsection 212(2) 0

Bruce Sinclair, Robert Kopstein, "Guaranteed to Enlighten: The Impact of Guarantees on Financing Arrangements", 2000 Conference Report, c. 22.

Richard G. Tremblay, James Fuller, "Tax Consequences of Cross-Border Guarantee Fees", International Tax Planning, Vol. X, No. 3, 2001, p. 716.

Ivan Williams, "Contract Manufacturing Strategies: Tax-Saving Options for Intercompany Profit Allocation", Tax Topics, 21 March 2002, No. 1567, p. 1.

Robert Turner, "Cost Contribution Agreements", International Transfer Pricing Journal, 2001 Vol. 8, No. 3, p. 89.

Robert Turr, "Practical Application of Transactional Profit Methods", International Transfer Pricing Journal, Vol. 7, No. 5, September/October 2000, p. 184.

Jack Bernstein, "Transfer Pricing in Canada", Bulletin for International Fiscal Documentation, Vol. 53, No. 12, 1999, p. 570.

Janice McCart, Emma Purday, "What's The Deal? - Canada's New Rules on Arm's Length Pricing and Bundled Transactions", Tax Management International Journal, Vol. 28, No. 10, 8 October 1999, p. 633.

F. Vincent, I.M. Freedman, "Transfer Pricing in Canada: The Arm's Length Principle and the New Rules", 1997 Canadian Tax Journal, Vol. 45, No. 6, p. 1213.

Tipping, "British Bankers Comment on OECD's Draft on Global Trading of Financial Instruments", Tax Notes International, Vol. 15, No. 14, 6 October 1997, p. 1119.

Paragraph 247(2)(a)

See Also

Commissioner of Taxation v Glencore Investment Pty Ltd, [2020] FCAFC 187

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Agracity Ltd. v. The Queen, 2020 TCC 91

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Locations of other summaries Wordcount
Tax Topics - General Concepts - Sham confused books and records, where no intent to deceive, were not indicative of sham 574
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(b) no evidence proffered that arm’s length parties would not have entered into non-resident goods seller/domestic servicing transactions 494
Tax Topics - General Concepts - Onus Hickman Motors followed, but same result under Sarmadi 331
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a.1) assessments based on s. 95(2)(a)(a.1) dropped by Crown 221

Burlington Resources Finance Company v. The Queen, 2020 TCC 32

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Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 132 in context, no formal admission made - and any admission could be withdrawn in the interests of justice 555
Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 54 amendment permitted in advance of trial to give effect to previously disclosed Crown position 307

Glencore Investment Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia, [2019] FCA 1432, largely aff'd [2020] FCAFC 187

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Administrative Policy

15 September 2020 IFA Roundtable, Q.5

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Tax Topics - Treaties - Income Tax Conventions - Article 9 Cdn governmental COVID assistance generally does not reduce cost 138

2020 IFA-YIN Seminar on COVID-19 Guidelines, Q.12

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Articles

Nakul Kohli, "Sharing COVID-19 Assistance with Foreign Entities Through Transfer Pricing", COVID-19 and Canadian Tax for the Owner-Manager/Canadian Tax Focus (Canadian Tax Foundation), July 2020, p. 5

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Paragraph 247(2)(b)

Cases

Canada v. CAMECO Corporation, 2020 FCA 112

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Tax Topics - Statutory Interpretation - Marginal Notes marginal note referred to as indication of provision’s thrust 68

See Also

Agracity Ltd. v. The Queen, 2020 TCC 91

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Tax Topics - General Concepts - Sham confused books and records, where no intent to deceive, were not indicative of sham 574
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(a) fee earned by Canadian servicer fell within “rough, but … acceptable, range of what an arm’s length service provider might have enjoyed” 303
Tax Topics - General Concepts - Onus Hickman Motors followed, but same result under Sarmadi 331
Tax Topics - Income Tax Act - Section 95 - Subsection 95(2) - Paragraph 95(2)(a.1) assessments based on s. 95(2)(a)(a.1) dropped by Crown 221

Administrative Policy

15 September 2020 IFA Roundtable, Q.3

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Tax Topics - Treaties - Income Tax Conventions - Article 26 Canada does not negotiate away its application of domestic anti-avoidance rules 84

2020 IFA-YIN Seminar on COVID-19 Guidelines, Q. 17

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Paragraph 247(2)(d)

Administrative Policy

CRA Notice to tax professionals 5 July 2019

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(3) CRA successfully applied transfer pricing penalties to an inbound hybrid loan 250

27 March 2019 CTF Seminar - Transfer Pricing

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(10) downward-adjustment requests reviewed for whether there is double non-taxation 110
Tax Topics - Income Tax Act - Section 233.8 - Subsection 233.8(3) use of CbC reports for assessing risk 36
Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(a) access to tax accrual working papers only where necessary 90

Subsection 247(2.1)

Finance

15 May 2019 IFA Finance Roundtable – “Proposed s. 247(1.1)”

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Articles

Nathan Boidman, Michael N. Kandev, "Evaluating Canada’s Attempt to Reconcile General Transfer Pricing Rules and Specific Antiabuse Provisions", Tax Notes International Vol. 98, No. 6, May 11, 2020, p. 699

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Marc Roy, "Proposed Transfer Pricing Ordering Rules", International Tax (Wolters Kluwer CCH), December 2019, No. 109, p. 3

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François Fournier-Gendron, "Amendments to the Act: The Impact of Proposed Subsection 247(2.1) on Section 17", Canadian Tax Highlights, Vol. 27, No. 12, December 2019, p. 5

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Joint Committee, "Transfer Pricing Amendments", 5 November 2019 Joint Committee letter

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Joint Committee, "Foreign Affiliate Dumping, Derivative Forward Agreement and Transfer Pricing Amendments Announced in the 2019 Federal Budget", 24 May 2019 Submission of the Joint Committee

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Subsection 247(3)

Administrative Policy

CRA Notice to tax professionals 5 July 2019

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(d) s. 247(2)(d) applied to inbound hybrid loan 269

14 September 2016 Internal T.I. 2016-0631631I7 - Transfer pricing capital adjustment

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) s. 247(2) ACB adjustment can be made in statute-barred year 271
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(11) s. 152(4) limits apply to additional s. 247(3) assessments 161

TPM-09 Reasonable efforts under section 247 of the Income Tax Act, September 18, 2006

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Articles

Brian Mustard, Sam Maruca, Charles Thériault, Richard Tremblay, "Transfer Pricing: What Are 'Reasonable Efforts,' and When should Penalties Apply?", Canadian Tax Foundation, 2015 Conference Report, 32:1-33

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Words and Phrases
reasonable efforts

Michael Colborne, Michael McLaren, Mark Barbour, "Subsection 247(3): What are "Reasonable Efforts"?", Canadian Tax Journal, (2016) 64:1, 229-43

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Words and Phrases
reasonable efforts

Subparagraph 247(3)(a)

Subparagraph 247(3)(a)(iii)

Administrative Policy

10 October 2014 APFF Roundtable Q. 26, 2014-0538201C6 F - 2014 APFF Roundtable, Q. 26 - Cost of property

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Tax Topics - General Concepts - Fair Market Value - Shares definition of FMV, which may differ from the s. 247 arm's length price 182
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) arm's length transfer price prevails over FMV 182

Subsection 247(4)

See Also

Marzen Artistic Aluminum Ltd. v. The Queen, 2014 DTC 1145 [at 3433], 2014 TCC 194, aff'd 2016 DTC 5018 [at 6600], 2016 FCA 34

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) separate entity approach endorsed 521

McKesson Canada Corporation v. The Queen, 2014 DTC 1040 [at 2723], 2013 TCC 404

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Tax Topics - General Concepts - Evidence expert reports without testimony 56
Tax Topics - General Concepts - Purpose/Intention tax purpose v. commercial result 92
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) terms adjusted within framework of transaction chosen by taxpayer 928
Tax Topics - Treaties - Income Tax Conventions - Article 9 5-year limitation did not apply to secondary Part XIII assessment 206

Administrative Policy

16 May 2018 IFA Roundtable Q. 4, 2018-0748171C6 - Penalties for Non-Residents

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Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) a non-resident who incorrectly claimed a no-PE Treaty exemption can apply for penalty relief 129

29 November 2016 CTF Roundtable Q. 9, 2016-0669801C6 - BEPS Action Item 13

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Tax Topics - Income Tax Act - Section 233.8 - Subsection 233.8(3) no requirement to produce a Local or Master File 77

TPM-05R – Requests for Contemporaneous Documentation 28 March 2014

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Articles

Michael Colborne, Michael McLaren, Mark Barbour, "Subsection 247(3): What are "Reasonable Efforts"?", Canadian Tax Journal, (2016) 64:1, 229-43

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(3) 433

Martin Przysuski, Srini Lalapet, "Appropriate Canadian Transfer Pricing Documentation", Tax Notes International, 3 October 2005, p. 55.

Paragraph 247(4)(a)

Administrative Policy

26 February 2019 Toronto CRA & Tax Professionals Seminar

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) BEPS has not substantially affected CRA's transfer-pricing practices 140

Articles

Brian Mustard, Sam Maruca, Charles Thériault, Richard Tremblay, "Transfer Pricing: What Are 'Reasonable Efforts,' and When should Penalties Apply?", Canadian Tax Foundation, 2015 Conference Report, 32:1-33

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Subsection 247(7)

Administrative Policy

26 April 2017 IFA Roundtable Q. 1, 2017-0691071C6 - Interaction between s17 and s247

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 17 - Subsection 17(1.1) s. 17(1) does not oust application of s. 247(2) 89

Articles

Brian Bloom, "A Policy of Disengagement: How Subsection 247(2) Relates to the Act's Income- Modifying Rules", CCH Tax Topics, No. 1957, 10 September 2009, p. 1.

Subsection 247(7.1)

Administrative Policy

31 March 2014 External T.I. 2013-0515661E5 - Subsection 247(7.1) coming into-force rule

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Articles

Geoffrey S. Turner, "Downstream Loan Guarantees and Subsection 247(7.1) Transfer Pricing Relief", CCH Tax Topics, No. 2166, September 12, 2013, p.1:

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Subsection 247(8)

Administrative Policy

19 December 2013 Internal T.I. 2013-0490751I7 - Adjustment to a taxpayer`s CDA

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 89 - Subsection 89(1) - Capital Dividend Account s. 247(2) increase to ecp proceeds increased CDA on transaction effective date 87

Subsection 247(10)

See Also

Dow Chemical Canada ULC v. The Queen, 2020 TCC 139

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Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(11) s. 247(11) only addresses penalty assessments 197
Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) the range of s. 171 remedies can be applied to an assessment that does not implement a requested s. 247(10) downward adjustment 365

Administrative Policy

27 March 2019 CTF Seminar - Transfer Pricing

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) - Paragraph 247(2)(d) 3-step process before s. 247(2)(d) is applied 165
Tax Topics - Income Tax Act - Section 233.8 - Subsection 233.8(3) use of CbC reports for assessing risk 36
Tax Topics - Income Tax Act - Section 231.1 - Subsection 231.1(1) - Paragraph 231.1(1)(a) access to tax accrual working papers only where necessary 90

Update - Competent Authority Services Division, 20 December 2013

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Memorandum TPM-03 "Downward Transfer Pricing Adjustments Under Subsection 247(2)," 20 October 2003

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 15 - Subsection 15(1) 98

Articles

Daniel Sandler, Lisa Watzinger, "Disputing Denied Downward Transfer-Pricing Adjustments", Canadian Tax Journal, (2019) 67:2, 281-308

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Nathan Boidman, "Canadian Approach to Downward Pricing Adjustments: CCRA's 18 March 2003 Communiqué", International Transfer Pricing Journal, Vol. 10, No. 5 2003, p. 181.

Subsection 247(11)

See Also

Dow Chemical Canada ULC v. The Queen, 2020 TCC 139

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(10) TCC has jurisdiction to review whether a CRA denial of a downward s. 247(10) adjustment was “correct in fact and law" 806
Tax Topics - Income Tax Act - Section 171 - Subsection 171(1) the range of s. 171 remedies can be applied to an assessment that does not implement a requested s. 247(10) downward adjustment 365

Administrative Policy

14 September 2016 Internal T.I. 2016-0631631I7 - Transfer pricing capital adjustment

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(2) s. 247(2) ACB adjustment can be made in statute-barred year 271
Tax Topics - Income Tax Act - Section 247 - New - Subsection 247(3) no statute-barring applies to initial assessments of transfer-pricing penalties 326

Articles

Daniel Sandler, Lisa Watzinger, "Disputing Denied Downward Transfer-Pricing Adjustments", Canadian Tax Journal, (2019) 67:2, 281-308

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Subsection 247(12)

Administrative Policy

18 April 2019 Internal T.I. 2018-0753621I7 - Subsection 247(12)

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Locations of other summaries Wordcount
Tax Topics - Treaties - Income Tax Conventions - Article 10 secondary adjustment benefit to a NR sister was a dividend for Treaty purposes 221
Tax Topics - Treaties - Income Tax Conventions - Article 4 a s. 247(12) secondary-adjustment deemed dividend paid by Canco to an LLC sister qualified under Art. IV(6) for the 5% Treaty-reduced rate on dividends to its U.S. parent 498

19 November 2014 Internal T.I. 2014-0530911I7 F - Transfer pricing secondary adjustments

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TPM-02 "Repatriation of funds by Non-residents – Part XIII assessments" 27 March 2003

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Articles

Joel A. Nitikman, "Section 247 – Secondary Adjustments, Deemed Dividends, Repatriation and Interest", International Tax Planning (Federated Press), Vol. XVIII, No.1, 2012, p. 1224, at p.1225

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Subsection 247(13)

Articles

Joel A. Nitikman, "Section 247 – Secondary Adjustments, Deemed Dividends, Repatriation and Interest", International Tax Planning, Vol. XVIII, No.1, 2012, p. 1224, at p. 1226:

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