Recently, in CIBC World Markets Inc. v. R. (“CIBC case”), the Chief Justice of the Tax Court of Canada (“TCC”) was faced with an issue that was novel to Canada's consumption tax jurisprudence. Can a GST registrant retrospectively change its method for allocating input taxes between its...

The purpose of this article is to point out recent and significant developments that further support the author's call to acknowledge the necessary role of contract interpretation in the process of delineating the actual controlled transaction when conducting a transfer-pricing analysis. The...

This article discusses the task of identifying controlled transactions under review by the Commissioner of the Internal Revenue Service. In particular, it aims to alert courts as to the necessary role of contractual interpretation law in determining the true nature of such controlled transactions

In recent years, Canada's courts have expressed a number of conflicting views about whether the parol evidence rule can be invoked by or against the Minister of National Revenue (Minister) in tax disputes. Unfortunately, the courts in these cases did not elaborate, to a sufficient extent, on the...

GlaxoSmithKline Inc. v. The Queen is a seminal Canadian transfer pricing case. On final appeal to the Supreme Court of Canada, the Minister of National Revenue asked the Court to determine whether the Court of Appeal erred in applying the reasonable business person test. The author critically...

The Tax Court of Canada's recent analysis, in Henco Industries Limited v. Her Majesty the Queen, raises several important questions that relate to contractual interpretation in tax disputes. Firstly, what is the proper objective of contractual interpretation in tax disputes? Is the courts'...