Canada vs. GlaxoSmithKline Inc., October 2012, Supreme Court, Case No 2012 SCC 52

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Category: Benchmark, Range and Median, Commodity Transactions, Transfer Pricing Methods | Tag: , , , , , , , ,
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The Supreme Court of Canada ruled in the case of GlaxoSmithKline Inc. regarding the intercompany prices established for purchases of ranitidine, the active ingredient in the anti-ulcer drug Zantac, from a related party during the years 1990 to 1993.

The Supreme Court partially reversed an earlier decision of the Tax Court and affirmed a decision of the Federal Court of Appeal in concluding that other transactions should be taken into account when determining whether the transfer prices are reasonable.

However, the Supreme Court did not determine whether the transfer pricing methodology used by GlaxoSmithKline Inc. was reasonable but instead remanded the matter to the Tax Court.

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