Tag: Jurisdiction of tax court
Legal boundary defining what transfer pricing disputes a tax court may hear and decide. Frequently contested where a revenue authority exercises discretionary power — such as refusing a downward adjustment — leaving courts unable to substitute their own judgment for the Minister’s discretion.
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
Canada vs Dow Chemicals, February 2023, Supreme Court, Case No. 40276
Dow Chemical sought a downward transfer pricing adjustment, but the Federal Court of Canada held in 2022 that the Tax Court lacked jurisdiction to review the Revenue Agency's opinion, as it is not an assessment. Dow Chemical appealed, and in February 2023 the Supreme Court of Canada granted leave to appeal, agreeing to consider the question of the Tax Court's jurisdiction over downward adjustments ... Read more
Canada vs Dow Chemicals, April 2022, Federal Court of Appeal, Case No 2022 FCA 70
Dow Chemical Canada ULC challenged the Minister's denial of a downward transfer pricing adjustment under subsection 247(10) of Canada's Income Tax Act. The Federal Court of Appeal considered whether such a denial falls within the Tax Court of Canada's exclusive original jurisdiction. The court upheld the Tax Court's position that it retains jurisdiction where the resulting assessment has been properly appealed, deciding in favour of the tax authority's interpretation ... Read more