Previous Print
Blawg Briefs
Tax News Flash - Taxpayer Wins Major Transfer Pricing Case

The decision of the Supreme Court of Canada in GlaxoSmithKline was released on October 18, 2012, upholding the decision of the Federal Court of Appeal and referring the matter back to the Tax Court of Canada for redetermination. The issue in the case was the transfer price for ranitidine, the active ingredient in Zantac, an ulcer drug produced by GlaxoSmithKline. The issue in the appeal was what circumstances are to be taken into account in determining the reasonable arm’s length price against which to compare the non-arm’s length transfer price.

The Canada Revenue Agency (“CRA”) took the position that the purchases made by generic drug companies for ranitidine were the comparable transactions that should be used to determine the amount that was reasonable in the circumstances. Thus, according to the CRA, the arm’s length price which the taxpayer ought to have paid to Adechsa was that paid by the generic companies for their ranitidine.

Full Article With Comments...

Tags

GlaxoSmithKline
Income Taxt Act
Tax
Tax News Flash
Taxpayer
     

Authors

Marni Pernica
Barbara Worndl
Tax News Flash - Supreme Court Confirms Central Management and Control Test for Trust Residency
Blog entry graphic

The Supreme Court of Canada today released its judgment in St. Michael Trust Corp. et al v. The Queen, 2012 SCC 14, denying the taxpayer’s appeal and holding that the appellant trusts, both of which had a Barbados resident trustee and were formed under the laws of Barbados, were resident in Canada and subject to Canadian tax on the gains realized on the sale of certain shares.

This decision confirms that the test to be applied in determining the residency of a trust is the common law test of central management and control, which has long been the test to determine the residence of a corporation. The Court rejected that a trust is necessarily resident where its trustees are resident, which until now had generally been accepted in Canada as the test to determine trust residency. The Court held that there are many similarities between a corporation and a trust that justify the application of the central management and control test to determine the residence of a trust.

Full Article With Comments...

Tags

St. Michael Trust Corp.
Supreme Court of Canada
Tax
Tax Court of Canada
Tax News Flash
The Queen
     

Authors

Barbara Worndl
Search Entries
Entries By Author
Entries By Tag
Advantage Aeroplan Aeroplan Miles Age Air Canada Air Canada Foundation Alberta Information and Privacy Commissioner Alberta’s Privacy Act amicus briefs Bankruptcy and Insolvency Bitcoin Bozzo Broadcasting Act Broader Public Sector Budget Budget 2013 Business Buy America Buying a Franchise Canada Canada Revenue Agency Canada Tax System Canada’s anti-spam law Canada’s Anti-Spam Legislation Canada-Netherlands Tax Treaty Canadian Anti-Spam Legislation Canadian broadcasting Canadian Charter of Rights and Freedoms Canadian copyright law Canadian Government Canadian law Canadian Pacific Railway Canadian Trade-marks Journal CDS Clearing and Depository Services Cerner Corp. Challenges CIPO CIRA Class Action cleantech clear and convincing evidence Commercial Activity Consent Consolidated Debenture Stock constitutional challenge consumer products contract errors contracts Copyright Copyright Act Copyright damages copyright extension acts Copyright infringement Copyright Modernization Act copyright policy copyright reform corporate governance Corporate Measures CRA Crime-Related Death and Disappearance Leave Critically Ill Child Care Leave Cross Border Outsourcing CRTC custom XML Cyber Security Densification digital downloads digital media levy Digital Millennium Copyright Act digital music Divisional Court Doing Business in Canada Domain Name domain name registry Domain names domain registry scam Donation Download dube East Texas District Economy eHealth eHealth Ontario Electricity electronic health records electronic medical records email scam Employment Standards Act (Leaves to Help Families) Employment Standards Act, 2000 empty voting Enforceability of terms of use Entrepreneurs Environment Eric Schmidt ERT evidence ex parte Excise Tax Act Expansion expired patents Facebook Failure Fair dealing fair use/fair dealing Family Caregiver Leave FAPI Federal Budget Federal Court of Appeal federally regulated financial institutions fee-for-carriage Fighting Internet and Wireless Spam Act file sharing Financial Firewalls FISA FIT Foreign foreign investment Foreign ownership Franchise Franchisor free trade FSB G20 summit G8 and G20 GameStation Gift GlaxoSmithKline Gmail goals Gold Payment Clause Google Google Buzz Google Buzz privacy Google executives Google Italy Google privacy Google privacy appeal Google Street View privacy governance issues government Government of Canada government policy green economy Green Energy GST Hanna House of Commons HST i4i ICANN IDN Improving Business Income Tax Act Income Taxt Act Industry Canada consultation Infrastructures for Information innovation intellectual property International Internationalized domain names Internet Internet competition Internet copyright issues internet domain name scam intrusion on seclusion invalidate patent inventiveness investing ISP Italy privacy law prosecution Jennifer Stoddart Jim Flaherty Jones v. Tsige judgment against Microsoft June Budget Justice Charles Hackland Law Law Times Lawson v. Accusearch Licensing LimeWire litigation local government Long-Term Energy Plan (LTEP), M&A Magder v. Ford Manitoba’s Court of Queen’s Bench manufacturing Mason Capital Management LLC McNamee Mental Health metadata Microsoft patent infringement Microsoft Word Ministry of Energy Multi-national Municipal Conflict of Interest Act municipal projects music industry music licensing Napster Nature of Transaction notice and takedown nuisance Office of the Privacy Commissioner Online Online Activity online contracts Ontario Ontario Court of Appeal Ontario Divisional Court Ontario Family Law Act OPA OPC OSFI issues outsourcing Owner Parliament patent system patents Personal Health Information personal information Personal Information Protection Act personal injury Personal Measures personally identifiable information PHIPA PIPEDA Planning Policy Politics Power Premier Kathleen Wynne preponderance of the evidence privacy Privacy Commission Privacy Compliance Privacy Policy privacy protection privacy rights private copying private equity procurement productivity Profit Proper Execution proxy battle public infrastructure Real Estate Real Property Association of Canada Reference re Broadcasting Act renewable energy Renewable Energy Approvals renewable power requisition RIAA Rob Ford Security Registration Errors selling your soul share consolidation shareholder activism shareholder democracy Shares Sick Kids social networking software patent Sound Sound Marks Spam sparks St. Michael Trust Corp St. Michael Trust Corp. Startups State Farm steganography Strengths Success Successful Franchise Systems Supply Chain Guideline Supreme Court Act Supreme Court of Canada Sydney, Australia Tax Tax Court of Canada Tax Credit Tax News Flash Taxpayer Technological Protection Measures technology Telecommunications TELUS Corporation The Financial Stability Board The Hospital for Sick Kids The Queen the U.S. dollar Toronto tort TPM Trademark Trade-marks Act Tranmer, J. transit transmission project Trusts Typosquatting United States UrbanGrowth NSW Annual Conference Usage Velcro Canada Inc. venture capital Weakness Webcrawling Website writ of certiorari XML YouTube
Entries By Date
User Settings
Login to select personalized notfications for this blog


Register | Forgot your password?