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

Blackberry Limited sought to introduce two expert reports in a Tax Court of Canada appeal concerning a CAD 17.1 million FAPI assessment relating to R&D services from US affiliates. The tax authority challenged the reports as irrelevant, unnecessary, and prejudicial. Applying the Mohan and White Burgess two-step admissibility test, the court ruled in favour of the tax authority and excluded both expert reports in 2023 ... Read more

Loblaw Financial Holdings incorporated an offshore bank subsidiary in Barbados in 1992 and excluded its income from Canadian tax returns under the FAPI financial institution exception. The Canada Revenue Agency challenged the exclusion and applied GAAR. Canada's Supreme Court ruled mostly in favour of the taxpayer in December 2021, upholding the financial institution exception and rejecting the general anti-avoidance rule challenge ... Read more

Canada Revenue Agency reassessed Loblaw for tax years 2001–2010, arguing its Barbadian subsidiary Glenhuron did not qualify as a foreign bank under Canadian law and was therefore not exempt from Canadian tax on foreign accrual property income. The Tax Court found the transactions did produce a tax benefit but were entered primarily for non-tax purposes, concluding they were not avoidance transactions and ruling in favour of Loblaw ... Read more