What we do

The Transfer Pricing Review Committee (TPRC) was established in 2004 to review all cases where a transfer pricing penalty may be applied.

• Information on transfer pricing and associated penalties
• Information on referrals to the TPRC

Our mandate

The mandate of the TPRC is to promote compliance with Canada’s transfer pricing rules by ensuring fair and consistent application of two aspects of those rules: transfer pricing penalties under subsection 247(3); and the recharacterization rule in paragraphs 247(2)(b) and (d).

• Terms of reference for the committee

Membership

The Director of the CRA’s International Tax Division chairs the TPRC. Other members include the International Tax Division’s Chief Economist and Senior Technical Field Advisors as well as a representative from Legal Services. A senior representative from CRA’s Tax Avoidance Division and from the Department of Finance Canada are invited to attend when required. The taxpayers and the tax services office audit team do not attend the TPRC meetings.

Statistics

TPRC Summary – As of December 31, 2020

247(3) Penalty Referrals

247(3) Penalty Referrals	Number of cases	Percent of total
Penalty recommended	342	42.2%
Penalty not recommended	468	57.8%
Total 247(3) cases referred	810	100.0%

247(2)(b) Re-characterizations

247(2)(b) Re-characterizations	Number of cases	Percent of total
Denied	59	40.4%
Assessed	36	24.7%
Ongoing cases	51	34.9%
Total 247(2)(b) re-characterizations referred	146	100.0%