International transfer pricing: a Canadian perspective.

Canadian law on international transfer pricing includes statutory anti-avoidance provisions, case law, Information circular 87-2, and Revenue Canada's Advance Pricing Agreement procedure. Transfer pricing laws cover non-arm's-length transactions between related parties for goods and services, a common practice given Canada's level of international commerce. Although Canadian case law on transfer pricing is inconclusive, the Advance Pricing Agreement appears to be a cost-effective route for companies facing transfer pricing situations.