Canada Launches Transfer Pricing Reform Triggered by Cameco Tax Case

Canada released long-awaited proposals to reform its transfer pricing rules by making them more precise and clarifying how tax authorities would apply the arm’s length principle when determining whether transactions are in breach of the rules.

The country’s Department of Finance is seeking feedback on a handful of proposals for reform “to protect the integrity of the tax system while preserving Canada’s attractiveness as a destination for new investment and business activities,” Maude Duguay, the department’s spokeswoman, said Wednesday.

“Considering Canada has not revised its transfer pricing rules since 1997, the review is important to ensure Canadian rules align with ...