Canada: Guidance on obtaining Competent Authority assistance, MAP requests and transfer pricing adjustments

Updated guidance provides information on Competent Authority assistance, MAP requests and transfer pricing adjustments

Updated guidance provides information on Competent Authority assistance

The Canada Revenue Agency (CRA) issued an updated Information Circular 71-17R6 "Competent Authority Assistance under Canada's Tax Conventions.”

The revised circular reflects the CRA's administrative policies that were not previously documented, and provides guidance on obtaining assistance from the Canadian Competent Authority for persons within the scope of one of Canada's income tax treaties.

Specifically, the updated guidance provides guidance or information on:

  • How to contact the Canadian Competent Authority
  • How to make multilateral mutual agreement procedure (MAP) requests
  • Adjustments to business profits; all of Canada's income tax conventions allow for the possibility of MAP related to transfer pricing adjustments
  • Requirements to submit a Competent Authority request (generally unchanged but two new elements that must be addressed)
  • Circumstances when requests for downward transfer pricing adjustments will be accepted
  • Taxpayer responsibilities, the timing for MAP requests, and waiver by taxpayers of their objection or appeal rights
  • Specific issues under the Canada–United States income tax treaty

Read a June 2021 report prepared by the KPMG member firm in Canada

 

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