A total of 316 new cases were accepted during the year (up from 275 in 2008), and 306 were completed (up from 235 in 2008). One adviser says this is not good news.

“I think that the rise in the number of cases shows that there is a growing discord between the enforcement of the transfer pricing rules in Canada and its major treaty partners,” said Greg Noble, partner and Canadian market leader for transfer pricing services at Ernst & Young.

“Most notably, 67 of the 83 bilateral cases were with the US. This demonstrates that the US approach of developing non-OECD type transfer pricing rules (unilateral) over the past several years has created an environment where it is very difficult to find a common solution to cross-border issues. Canada feels this more painfully than other jurisdictions due to the fact that the Canadian and US economies are the two most integrated economies in the world.”

Articles offering the MAP are often included in bilateral tax conventions. The process allows residents in either country to request assistance from their tax authority’s competent authority to resolve tax issues that are covered by the convention. The provisions are intended to relieve taxpayers of double taxation.