Tag: Discretionary decision
Legal classification distinguishing discretionary from non-discretionary tax acts. In transfer pricing, authorities’ refusals to grant downward adjustments are treated as discretionary decisions, placing them outside courts’ standard appellate jurisdiction to override or substitute the authority’s judgment.
Canada vs Owens Corning Canada Holdings ULC, March 2026, Tax Court, Case No. 2026 TCC 60
MEGlobal Canada ULC appealed to the Tax Court of Canada after the Minister refused to grant a downward transfer pricing adjustment. The Court quashed the appeal for lack of jurisdiction, finding that the refusal was a discretionary decision rather than a formal assessment. Since the Tax Court can only hear appeals concerning assessments, it could not review the Minister's discretionary authority. The Court also denied the company's request to amend its Notice of Appeal ... Read more
Canada vs MEGlobal Canada ULC, February 2026, Federal Court of Appeal, Case No. 2026 FCA 24
MEGlobal Canada ULC appealed to the Tax Court of Canada after the Minister refused to grant a downward transfer pricing adjustment. The Court quashed the appeal for lack of jurisdiction, finding that the refusal was a discretionary decision rather than a formal assessment. Since the Tax Court can only hear appeals concerning assessments, it could not review the Minister's discretionary authority. The Court also denied the company's request to amend its Notice of Appeal ... Read more
Canada vs MEGlobal Canada ULC, March 2025, Tax Court, Case No. 2025 TCC 50
MEGlobal Canada ULC appealed to the Tax Court of Canada after the Minister refused to grant a downward transfer pricing adjustment. The Court quashed the appeal for lack of jurisdiction, finding that the refusal was a discretionary decision rather than a formal assessment. Since the Tax Court can only hear appeals concerning assessments, it could not review the Minister's discretionary authority. The Court also denied the company's request to amend its Notice of Appeal ... Read more
Canada vs Dow Chemicals, June 2024, Supreme Court, Case No. 2024 SCC 23
Dow Chemical challenged the Minister of National Revenue's discretionary refusal to grant a downward transfer pricing adjustment under section 247(10) of the Income Tax Act. The Canadian Supreme Court dismissed Dow's appeal in 2024, confirming that the Tax Court lacks jurisdiction to review such discretionary ministerial decisions, and that judicial review must instead be sought before the Federal Court ... Read more