Transfer Pricing: Foreign Rules and Practice Outside of Europe , presents the rules and practice related to transfer pricing in Canada, Mexico, and Japan. This detailed analysis makes up Chapters 31, 32, and 33 of Bloomberg BNA’s Tax Management Transfer Pricing Portfolio Series.
This Portfolio boasts an extensive list of expert authors including Nathan Boidman, Esq., of Davies Ward Phillips & Vineberg; Nicasio J. del Castillo and Horacio Peña of PricewaterhouseCoopers, LLP; Manuel F. Solano of Ernst & Young, LLP; David García Fabregat; Gary M. Thomas, Esq., of White & Case and Akira Akamatsu, Licensed Tax Attorney.
Chapter 31, Transfer Pricing Rules and Practice in Canada, analyzes the operation of the Canadian transfer pricing rules and examines Canada's rules relating to penalties, tax amnesty and interest on amounts in dispute. Transfer pricing compliance, litigation, advance pricing agreements, competent authority assistance, information reporting, and record keeping under the Canadian system are also discussed in detail.
Chapter 32, Transfer Pricing Rules and Practice in Mexico, analyzes the issues involved in determining which taxpayers and transactions are subject to the Mexican transfer pricing rules. It describes the Mexican view of the arm's length standard and the application of transfer pricing methods, and details the treatment of correlative adjustments and special situations, including transfer pricing for maquiladoras. In addition, the chapter addresses procedural matters, the relationship between transfer pricing and customs duties, and planning considerations.
Chapter 33, Transfer Pricing Rules and Practice in Japan, presents the substantive Japanese transfer pricing rules and describes in detail the conduct of a transfer pricing examination in Japan. The chapter also analyzes appeals procedures, the availability and process for competent authority relief, and the operation of the Pre–Confirmation System in transfer pricing cases.
Transfer Pricing: Foreign Rules and Practice Outside of Europe allows you to benefit from:
This Portfolio is part of the Foreign Income Portfolios Library, a comprehensive series containing more than 90 Portfolios, which covers critical transactions and issues in international taxation. This highly-regarded resource service offers commentary on a wide range of foreign income topics including: Foreign Tax Credit, Business Operations in more than 40 foreign coutnries, Branch ProfitsTax, Source of Income Rules, Subpart F (Controlled Foreign Corporations), Foreign Partnerships and Partners, Transfer Pricing, and more.
Detailed Analysis
Chapter 31: TRANSFER PRICING RULES AND PRACTICE IN CANADA by Nathan Boidman, Davies Ward Phillips & Vineberg, Montreal, Canada
31:I. Introduction and Overview
A. The Arm's Length Principle - Nature and Role in Canada
B. Themes and Parameters of Canadian Transfer Pricing Law
1. Overview
2. Parameters
C. Overview of Changes Since 1994
31:II. Relationship Between the Canadian Tax System and Transfer Pricing
A. Principles of Taxation (Taxing Jurisdiction - Tax Base; Unilateral Relief from Worldwide Taxation)
1. U.S. Multinational with Canadian Subsidiary
2. Canadian-Based Multinational with U.S. Subsidiary
B. Federal and Provincial Tax Rates
2. Federal Tax Rates
3. Provincial Corporate Income Tax Rates
4. Withholding Taxes on Dividend Distribution
5. Combined Rates of Tax
C. Tax Rate Arbitrage
31:III. Threshold Issues and Parameters of Canadian Transfer Pricing Law
A. Basic Conundrum ("Reasonable Amount")
1. Basic Simplicity of Relevant Law
a. Statutory Scheme
b. Case Law
c. Administrative Approaches
2. The Problem and Issues (Arising from the Basic Simplicity of the Law)
a. Tax-Motivated Structures
b. Tax-Motivated Prices
c. Basic Uncertainty
d. Increased Compliance Reporting - Requirements and Penalties
3. Summary
B. Motive and Evidentiary Issues
1. General Discussion
2. The Role of Hard Bargaining
3. Canada-United States Context
a. General Discussion
b. January 1994 Revenue Canada/Department of Finance Announcement
C. Sources of Canadian Transfer Pricing Law: Section 69, Section 247, IC 87-2 (Revised IC-87-2R), Case Law
1. General Considerations
2. Legal Framework
a. Statutory Basis for Arm's Length Principle
b. Scope and Purpose of the Information Circular
(1) The Original Circular (IC-87-2)
(2) The Revised Circular (IC-87-2R)
c. The Case Law
D. Canadian Transfer Price Laws Compared with Internal Revenue Code Section 482
1. Historical Similarities
2. Historical Differences
3. Current Similarities and Differences
a. Overview
b. The Best Method Rule v. the Natural Hierarchy of Pricing Methods
c. Choosing "A Method of Last Resort"
d. TNMM v. CPM
e. An Overall View of the Hierarchy - Contrast to the United States
f. Periodic Adjustments and Intangibles
31:IV. Basic Canadian Transfer Pricing Rules
A. Statutory Rules - Sections 247 and 251
2. Transactions Subject to Canadian Transfer Pricing Rules
3. Note Respecting Intracompany (Head Office - Branch) Transactions
4. The Anti-Avoidance Element
B. Parties Subject to Transfer Pricing Reallocation Rules
1. Section 247 and Non-Arm's Length Persons
2. Non-Arm's Length Persons
a. Persons
b. "Dealing at Arm's Length"
(1) Arm's Length and Related Parties
(2) Non Arm's Length Dealing Between Unrelated Parties - A Question of Fact
c. Summary
C. Reasonable Price (Transfer Pricing Standards)
2. Basic Rules and the Issue of Offset
a. Under Prior Sections 69(2) and (3)
b. Offset Under Section 247(2) and (10)
3. Separate Price v. Bundling
4. Comparability Factors
5. Ranges
6. Role (Effect) of Business Strategy
D. Arm's Length Price for Tangible Property Sales
1. Overview of Methods Establishing Arm's Length Prices
2. The CCRA's Position
3. Comparables
b. Analysis of Comparables in Indalex
4. Secondary and Other Methods
a. Overview and Implications of U.S. "Best Method" Rule [The Original Perspective]
b. Resale Price and Cost Plus Methods
c. "Fourth Methods": Profit Splits and Other Methods - The Original Perspective
(1) General Discussion
(2) Application of Fourth Methods in Indalex
d. "Fourth Methods": The Current Perspective
E. Intangibles
2. Sale of Intangibles
3. Licensing Agreements
a. Under IC-87-2R
b. The U.S. Super Royalty Rule in the Canadian Context
(1) Overview and Background
(2) Implementation of Super Royalty from the Traditional Canadian Perspective
(3) Summary: Original Perspective
4. The Revised Circular
5. Cost Contribution (Sharing) Arrangements
a. Research and Development (Cost Contribution Arrangements) - Under Original IC-87-2
b. Qualified Cost Contribution Arrangements Under IC-87-2R
6. Withholding Tax Issues
7. Outbound Transfers
F. Services
1. Commissions and Services Generally
2. Fees for Centralized Administrative Management and Other Services
b. Deductibility
(1) Overview
(2) Custodial (Stewardship) Expense Issue
(3) Benefit Test
(4) Allocation Methods
(5) Pricing and Mark-Up or Profit Margin?
(6) Related OECD Views
c. Withholding Taxes
d. Contracts of Service vs. Agency Relationships
G. Interest on Loans
1. Arm's Length Standard
2. Thin Capitalization
3. Interest Imputation - Loans by Canadian Corporations
4. Interest Imputation - Loans by Nonresidents
H. Secondary Adjustments
31:V. Penalties, Tax Amnesty and Interest on Transfer Pricing Adjustments
A. Overview
B. Transfer Price-Related Penalties and Contemporaneous Documentation
2. The Penalty Rule
3. Contemporaneous Documentation
4. Effective Date Issue
5. The CCRA (Circular) Views
C. Penalties and Amnesty - General Application
D. Interest on Amounts in Dispute
E. Amnesty on Interest and Penalties
31:VI. Compliance and Litigation
A. Main Features of the Tax Administration
1. Domestic Law
2. Treaties
B. Role of the Government - Finance and the CCRA
1. Assessment
2. Reporting
3. Advance Rulings (APAs)
a. The Advent of the APA
b. Canadian APAs -Background
c. Information Circular 94-4R
(2) APA Processing
(3) Bilateral and Multilateral APAs
(4) Term and Possible Retroactive Application
(5) APA Reports and the Review of Results
d. Advisability and Risks of Seeking APAs
(1) The Difference Between an APA and an Advance Income Tax Ruling
(2) Situations in Which APAs Should Be Sought
(3) Situations in Which Not to Seek an APA
4. Transfer Pricing Audits
5. Exchange of Information and Competent Authority
6. Information Demands
7. Correlative Adjustments
C. Burden of Proof on Taxpayer
D. Administrative Appeals
E. Judicial Review
1. Jurisdiction and Procedure
2. Burden of Proof
3. Functional Analysis
4. Confidentiality
a. Confidentiality of Third Party Information - Background
b. Confidentiality of Third Party Information and the Issue of "Secret Comparables"
F. Provincial Law Aspects of Transfer Pricing and Cooperation with the Federal Authorities
31:VII. Canadian Competent Authority and Transfer Pricing Issues
B. Transfer Pricing Rules in Canada's Tax Treaties
1. General Approach
2. Parties Involved
3. Mandatory v. Discretionary Settlements
4. Branches
C. CCRA Initiated Adjustments
1. CCRA Audits and Statute of Limitations
2. The Competent Authority Proceedings
3. The Degree of Canadian Taxpayer Involvement With the CCRA in Competent Authority Proceedings
4. The CCRA's Willingness to Deviate from Canadian Transfer Pricing Rules in Competent Authority Proceedings
5. The CCRA's Willingness to Deviate from Canadian Penalty and Interest Rules
D. Foreign Government Initiated Adjustments
E. Taxpayer-Initiated Adjustments
31:VIII. Information Reporting and Recordkeeping
A. Reporting Transfer Prices
1. Prior to 1998
2. 1998 Amendments to Reporting Rules
a. The Statutory Rule - Reporting Requirements
b. Penalties for Non-Compliance
3. The Prescribed Information Return Under Section 233.1 - Form T106
B. The CCRA Demands for and Access to Information
31:IX. Coordination of Transfer Prices with Customs Declarations
Chapter 32: TRANSFER PRICING RULES AND PRACTICE IN MEXICO by Nicasio J. del Castillo Horacio Pena PricewaterhouseCoopers, LLP and Manuel F. Solano Ernst & Young, LLP and David Garcia Fabregat Mexico City, Mexico
32:I. Introduction
32:II. Overview of the Mexican Tax System
A. Taxation of Mexican Corporations
1. Introduction
2. Worldwide Taxation of Domestic Corporations
3. Integrated Corporate Tax System
4. Inflation Adjustments
5. Treatment of Inventory
6. Depreciation
7. Consolidated Returns
8. Reorganizations
B. Taxation of Foreign Corporations
1. Income Attributable to a Mexican Permanent Establishment
2. Withholding Taxes on Income Not Attributable to a Mexican PE
a. In General
b. Dividends
c. Interest
d. Royalties
e. Service Income
f. Rental Payments
g. Sales of Real Estate
h. Sales of Shares in Mexican Corporations
C. Value-Added Tax
D. Tax on Business Assets
E. Profit Sharing to Employees
32:III. Evolution of the Transfer Pricing Regime
A. Background
B. Statutory Framework
C. Presumptive Determination of Income
32:IV. Taxpayers Covered by the Transfer Pricing Rules
A. In General
B. Resident Legal Entities
C. Resident Individuals
D. Mexican Permanent Establishments
E. Nonresident Legal Entities and Individuals
32:V. Related vs. Unrelated Parties
A. Definition of Related Party
B. Significance of Related Party Status
32:VI. Transactions Subject to Transfer Pricing Rules
A. Article 64 Transactions
1. Transactions Conducted at Prices Different Than Fair Market Value
2. Sales of Goods at Cost or Below Cost
3. Export-Import Transactions and Remittances Abroad
B. Article 64-A Transactions
C. Intracompany Transactions
32:VII. Arm's Length Standard
B. Loans and Factoring of Receivables
C. Performance of Services
D. Transfers or Use of Tangible Property
E. License or Transfers of Intangible Assets
F. Cost Sharing Agreements
32:VIII. Transfer Pricing Methods
Introductory Material
A. Comparable Uncontrolled Price Method
B. Methods Available to the SHCP
1. In General
2. The Market Price Method
3. The Cost-plus Method
4. The Resale-price Method
5. The Proportional Method
6. "Other" Methods
C. Priority of Application of Transfer Pricing Methods
32:IX. Correlative Adjustments
A. Current Situation
B. Transactions Among Mexican Taxpayers
C. Payments to Foreign Companies
D. Exports and Imports by Mexican Companies
E. Set-Offs
32:X. Special Situations
A. Maquiladoras
1. Present Situation
2. Planning Considerations
B. Sales of Shares in Mexican Companies
C. Sales of Mexican Real Estate
32:XI. Possible Impact of Transfer Pricing Rules on Other Mexican Tax Rules
A. Investment Tax Credits
B. Value-Added Tax
C. Tax on Business Assets
D. Profit Sharing
32:XII. Procedural Matters Potentially Relevant to Transfer Pricing
A. Reporting Requirements
2. Tax Return
3. Tax Report
4. Nonresident Taxpayers
B. Statute of Limitations
C. Tax Assessments
1. Audit and Review Procedures
2. Raising Transfer Pricing Issues
D. Interest and Penalties
E. Appeal Avenues
1. Administrative Level
2. Court Proceedings
F. Protective Measures
1. Advance Pricing Agreements
2. Rulings
3. Safe Harbor Provisions
G. Competent Authority Consideration
32:XIII. Custom Duties
A. Authority of the Customs Service
2. Related Parties
B. Valuation Methods
1. Transaction Value
2. Identical or Similar Goods
3. Unit Price
C. Interplay of Customs Valuation with Transfer Pricing Rules
32:XIV. Planning Considerations
32:XV. Conclusions
Chapter 33: TRANSFER PRICING RULES AND PRACTICE IN JAPAN by Gary M. Thomas White & Case Tokyo, Japan and Akira Akamatsu Licensed Tax Attorney Tokyo, Japan
33:I. Background
33:II. Sources of Transfer Pricing Law in Japan
A. Transfer Pricing Rules of General Application
B. Separate Rules for Transactions with Specified Trusts
C. Separate Rules for Consolidated Companies
33:III. Substantive Transfer Pricing Rules
A. Limitation to Foreign Related Transactions
2. Foreign Related Transactions
3. Foreign Related Persons
a. Corporation
b. Foreign Corporation
c. Special Relationships
(1) Control Through Shareholding
(2) Control in Substance
(a) Control through a Single Officer with Representative Authority
(b) Control Through Majority of Officers
(c) Control Through Business Transactions
(d) Control Through Financing
(e) Other Facts Similar Thereto
(3) Control Through a "Chain" of Relationships Including Control through Shareholding and Control in Substance
(4) Timing of Determinations
4. Transactions Through Unrelated Persons
B. Nature of Transactions Covered
C. Requirement to Conduct Transactions at Arm's Length Price
2. Definition of Arm's Length Price
D. Transfer Pricing Methods for Inventory
1. Comparable Uncontrolled Price Method
b. Transactions Used for Comparison
c. Comparable Property
d. Comparable Terms and Conditions of Sale
2. Resale Price Method
d. Comparable Terms and Conditions of Sale.
3. Cost-Plus Method
4. Other Corresponding Methods: The "Quasi-Methods"
5. Cabinet Order Methods
a. Profit Split Method
(1) In General
(2) Profits Subject to Split: Operating Profits
(3) Contribution Profit Split Method
(4) Comparable Profit Split Method
(5) Residual Profit Split Method
(6) Apportionment of Common Expenses
b. Transactional Net Margin Method
(2) Related Purchase/Resale Transactions
(3) Related Sale Transactions
(4) Corresponding Method: Quasi-TNMM Method
(5) Computation of Selling and General Administrative Expenses
6. Priority of Application of Methods
7. Comparability Factors
8. Adjustments for Differences
9. Use of Averages Permitted
10. Special Issues in Computation of the Arm's Length Price
a. Transaction Unit: Individual Transactions or Segments?
b. Offsetting Transactions
c. Treatment of Foreign Exchange Gains and Losses
d. Treatment of Discounts and Rebates
e. Treatment of Differences in Accounting Methods
f. Amount of Acquisition Cost in the Cost-Plus Method
11. Compensating Adjustments
E. Pricing Methods for Other Kinds of Transactions
2. Rental of Tangible Property
3. Rental of Machinery and Equipment to Contract Manufacturers
4. Loans
5. Services
b. Effect of Intangible Property
c. Cost-Based Analysis
d. Treatment of Provision of Services Within a Corporate Group
6. Treatment of Licensing or Assignment of Intangible Property
F. Presumptive Taxation Method: Penalty or Another Transfer Pricing Method?
2. Shifting the Burden of Proof
3. Scope of Necessary Information
4. Time Period for Disclosure
5. Comparable Enterprises.
a. Criteria for Identifying "Similar" Business Activity
b. Use of Related Parties as Comparable Enterprises
c. No Need for Adjustments for Differences?
6. Gross Margin Ratio or Equivalent Ratios
a. Sales of Inventory
b. Other Business Activities
7. Effect of Presumption and Rebuttal
G. Relationship with "Donation" Provisions
H. Adjustment to Final Return
1. Adjustment of Final Return for Difference from the Arm's Length Price
2. No Tax Return Adjustment for Excess Profits
3. Adjustment of Acquisition Value in the Case of High Price Purchases
I. Treatment of the Amount of Income Transferred Overseas, Etc.
1. Treatment of the Amount of Income Transferred Overseas
2. Treatment in the Case of Repayment of Amount of Income Transferred Overseas
33:IV. The Transfer Pricing Examination
A. Overview of Tax Examinations
a. Self-Assessment System
b. Revisions and Determinations
c. Statute of Limitations
d. Frequency of Examinations
2. Administration of Examinations
b. Transfer Pricing Examinations
(1) Field Level Staff
(2) National Office Staff
(3) Economists and Government Counsel
3. Authority to Conduct Examinations and Demand Books and Records
b. Statutory Basis
c. Persons Who Can Be Examined
(1) Taxpayer
(2) Customers, Suppliers and Lenders
(3) Government Agencies
(4) Comparable Companies
d. Consent of Taxpayer
e. Indirect Compulsion
f. Basic Requirement for Information Production: "Necessity"
g. Sanctions for Refusal to Comply
h. Foreign-Based Documentation
i. No Defense of Self-Incrimination
j. Advisor Privilege Considerations
k. Duty of Confidentiality
4. Timing
B. NTA Transfer Pricing Guidelines
2. Basic Transfer Pricing Policies
3. Criteria to Determine Whether a Transfer Pricing Problem Exists
4. Factors to Be Taken into Account in the Examination
5. Review of Attachment of Schedule 17-3
6. Documents to Be Investigated at Time of Examination
7. Application of Presumptive Taxation Method and Third-Party Audit Provision
8. Lack of Relevancy of Transfer Prices Computed by a Foreign Tax Authority
9. Miscellaneous Issues
a. Classification of Income as Domestic or Foreign in a Transfer Pricing Assessment
b. Thin Capitalization Provision
c. Withholding Income Taxes
d. Consumption Taxes
e. Repayment of Income Transferred Overseas
f. Impact of Correlative Adjustments due to a Transfer Pricing Assessment by a Foreign Tax Authority
C. Selection of Candidates for Examination
2. Review of Schedule 17-3
D. Taxpayer Preparation Prior to Examination
2. Coordination between Japanese Company and Foreign Related Persons
3. Documentation of Transfer Pricing Policies
4. Special Challenges for Foreign-Controlled Japanese Companies
a. Education of Japanese Management
b. Internal Audit
c. Contemporaneous Documentation
d. Examination Task Force
E. Taxpayer's Strategy and Tactics During Examination
1. Commencing the Examination
a. Notice and Purpose of Examination
b. Mere Information Collection or Regular Examination?
2. Setting the Operating Procedures
a. Appoint Taxpayer's Principal Representative in Examination
b. Pre-Examination Internal Conferences
c. Importance of Keeping Meeting Minutes
d. Document Production Considerations
(1) Operating Procedures
(2) Requirement of Written Requests
(3) Recordkeeping for Documents Submitted
(4) Preparation of Supplemental Explanatory Materials
e. Handling of Staff Interviews
f. Periodic Internal Reports
3. Taxpayer Attitude During Examination
4. Educating the Examiner
5. Monitor Examiner's'Developing Position
6. Presenting Taxpayer's "Positive" Case
7. Position Papers to Supplement Responses
8. Procedure for Preparing Documents
F. Examiner's Interim Report
G. Ending the Examination
1. Wrap-Up Meeting
2. Settlement Negotiations and Strategies
H. Assessment Procedures
1. Formal Notice of Deficiency
2. Making the Pricing Adjustment
b. Procedures
c. Characterization Issues
d. Adjustments Concerning Controlled Foreign Corporation Rules
e. Adjustment to Residual Assets
3. Payment of Tax
4. Measures to Avoid Immediate Payment of Tax
5. Interest and Penalties
a. Interest on Deficiencies
b. Penalties
33:V. Advance Pricing Arrangements
B. Purpose
C. Pre-Filing Conferences
D. Application
1. Request for Advance Confirmation
2. Attachment of Materials
3. Translation of Submitted Material
4. Correction of Confirmation Request
5. Transmittal of Copy of Confirmation Request Form to NTA
6. Business Years Subject to Confirmation
7. Revisions to Advance Confirmation Request
8. Withdrawal of Advance Confirmation Request
E. Substantive Review of Advance Confirmation Request
2. Recommendation for Pre-Filing Conference or Bilateral APA
3. Bilateral APAs
4. Notice of Results of Review
F. Annual Reports
1. Submission of Reports
2. Handling of Reports
G. Effect of Advance Confirmations
H. Adjustments to Prices
I. Revisions, Cancellation or Renewal
1. Revisions in Advance Confirmation
2. Cancellation of Advance Confirmation
3. Renewal of Advance Confirmation
J. Rollbacks
K. Application to Head Office-Branch Office Transactions
L. Relationship Between Examinations and Advance Confirmations
33:VI. Competent Authority
B. Sources of Authority
2. Treaty Provisions
3. Domestic Law
a. Statutory Provisions
b. MAP Circular
C. Persons Entitled to Seek Competent Authority Relief
2. Residents of Japan
a. Treaty Definition
(1) Corporations
(2) Individuals
(3) Estates and Trusts
(4) Partnerships
b. Domestic Regulations
3. Nonresident Individuals Who Are Japanese Nationals
4. Residents of the Treaty Country
5. Residents of Neither Japan nor the Treaty Country
D. Issues Subject to Competent Authority Relief
2. Taxes Covered
3. Action by a "Contracting State"
4. Action by "Either" Contracting State
5. Action "Not in Accordance with Treaty"
b. Specific Issues
(1) Interpretation or Application of Treaty
(2) List of Particular Issues in Treaty
(a) Same Attribution of Industrial or Commercial Profits for Single Resident
(b) Same Allocation of Income and Deductions Between Persons
(c) Advance Pricing Arrangements
(d) Other Double Taxation Cases
c. Direct Effect from Action?
6. List of Specific Issues in MAP Circular
a. Transfer Pricing Cases
b. Advance Pricing Arrangements
c. Permanent Establishment Cases
d. Withholding Tax Cases
E. Timing Considerations
1. Ripeness
2. Deadlines
F. Pre-Filing Conferences
G. Filing Procedures for Mutual Consultations
1. Application Form
2. List of Materials to Be Attached
3. Submission of Translated Documents
4. Review of Application for Mutual Consultations
5. Changes in Submitted Documents, Etc.
6. Retention of Documents
H. Protective Measures
I. Conduct of Mutual Consultations
1. Filing of Request for Mutual Consultations with the Competent Authority of the Other Country
2. Communications with the Other Country
3. Disclosure of Confidential Taxpayer Information
4. Status Reports to Applicant
5. No Duty to Reach Agreement
J. Taxpayer Role in Negotiations
1. Duty to Cooperate
2. Indirect But Active Involvement
K. Conclusion of Mutual Consultations
1. Confirmation of the Applicant's Acceptance
2. Notification of Agreement
3. Termination or Withdrawal of Mutual Consultations
a. Termination
b. Withdrawal of Application
4. Discontinuation of Document Retention Measures
L. Implementation of Agreement
1. Claim for Refund
2. Interest on Refund
M. Mutual Consultations Based Upon Requests from the Competent Authority of the Other Country
1. Transfer Pricing Assessments
2. Advance Confirmations in Case of a Domestic Corporation
3. Advance Confirmations in Case of a Foreign Corporation
4. Other Requests
5. Dealing with Withholding Agents
6. Submission of Documents
7. Notification of Agreement in Mutual Consultations
8. Termination of Mutual Consultations
9. Discontinuation of Document Retention Measures
N. Requests for Mutual Consultations Initiated by OMAP
33:VII. Domestic Appeals Procedures
B. Order of Appeals
1. Dispositions by District Director
2. Disposition by Regional Commissioner
3. Blue Return Filers
C. Timing of Appeals
1. Petition of Exception
2. Claim for Review
3. Unavoidable Circumstances.
4. One Year Restriction
D. Effect of Pending Appeal upon Disposition
E. Petition of Exception
1. Form
2. Review Procedures
3. Decision
a. Dismissal
b. Rejection on Merits
c. Withdrawal or Amendment of Disposition
4. Notice of Decision on Objection
F. Claim for Review
3. Ruling
4. Notice of Ruling
G. Judicial Review
1. Requirement for Prior Administrative Decision or Ruling
2. Parties
3. Timing
4. Procedures
Working Papers
Table of Worksheets
Worksheet 1 "Canada: Transfer Pricing in the Absence of Comparable Market Prices," Cahiers de Droit Fiscal International, Vol. LXXVIIa, p.323 (International Fiscal Association, Subject I, Cancun, 1992).
Worksheet 2 Resolution: "Transfer Pricing in the Absence of Comparable Market Prices," (International Fiscal Association, Subject I, Cancun, The 46th IFA Congress, 1992).
Worksheet 3 "Canada: An Offshore Transshipment Company Case: Indalex v. The Queen," 1988 International Bureau of Fiscal Documentation - BULLETIN, May 1988, p.202.
Worksheet 4 "Canada: Interestâ€"Free Loans and Intercompany Pricing," International Transfer Pricing Journal, Vol. 1 No. 1, 1993/1994, October 1993, p.34.
Worksheet 5 Department of Finance - Immediate Release, Ottawa, January 7, 1994, 94-003, "Transfer Pricing Rules and Guidelines Clarified."
Worksheet 6 The Revenue Canada assessor guidelines, "Intercompany Pricing Guidelines" - Revenue Canada No. 14(53)(0).
Worksheet 7 "Canada: Interaction Between Sale of Goods and Use of Trade-Marks Under Cross-Border Group Distributorships' Agreements," International Transfer Pricing Journal, Vol. 1 No. 3, 1993/1994, April 1994.
Worksheet 8 Interpretation Bulletin No. IT-303, "Know-how and Similar Payments to Non-Residents," April 6, 1976, as amended by Special Release September 19, 1985.
Worksheet 9 Interpretation Bulletin No. IT-468R, "Management of Administration Fees Paid to Non-Residents," December 29, 1989.
Worksheet 10 Information Circular 94-4R, International Transfer Pricing: Advance Pricing Agreements (APAs)
Worksheet 11 Information Circular No. 70-6R5, "Advance Income Tax Rulings," May 17, 2002
Worksheet 12 Information Circular 71-17R5 on Competent Authority Procedures
Worksheet 13 Form 106, Information Return of Non-Arm's Length Transactions with Non-Residents
Worksheet 14 Information Circular 87-2R [Released 9/27/99 by Revenue Canada]
Worksheet 21 Withholding Tax Rates on Payments to Nonresidents.
Worksheet 22 Statutory Profit Margins to Determine Taxable Income on a Presumptive Basis.
Worksheet 23 Information That Must Be Included in the Tax Report.
Worksheet 24 Excerpts from Mexico's 1997 Miscellaneous Fiscal Resolution by Secretaria de Hacienda y Credito Publico [Published 3/21/97; Translation by Price Waterhouse in Mexico City and Galaz, Gomex Morfin, Chavero, Yamazaki in Tijuana, a Deloitte Touche Tohmatsu Affiliate]
Bibliography
OFFICIAL
(Chapter 31: Canada):
(Chapter 32: Mexico):
(Chapter 33: Japan):
Treasury Rulings:
Cases:
UNOFFICIAL
Articles:
1983
1984
1986
1987
1988
1989
1991
1992
1993
1994
1996
1997
1998
1999
2000
2001
2002
2004
2005
2006
2007
2008