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Motion to quash granted; Tax Court lacks jurisdiction to order downward transfer pricing adjustments.
The respondent brought a motion to quash the appellant's appeals for the 2017 and 2018 taxation years.
The appellant sought a downward transfer pricing adjustment in calculating its foreign accrual property income from a controlled foreign affiliate.
The Tax Court held that it lacks jurisdiction to order downward transfer pricing adjustments, as such adjustments require the Minister's discretionary opinion under subsection 247(10) of the Income Tax Act.
The motion to quash was granted.
The court awarded the defendant $185,000 in costs after statutory deductibles reduced the plaintiff's jury award to zero.
This costs endorsement addresses the appropriate quantum of costs following a motor vehicle accident trial in which the plaintiff was awarded damages by the jury, but the award was reduced to zero by operation of the Insurance Act.
The defendant sought $269,264.87 in costs, later reducing the request to $230,000.
The plaintiff argued for a much lower award, citing financial hardship and litigation conduct.
The court fixed costs at $185,000, finding the defendant entitled to costs but reducing the amount for duplication, lack of particulars, and proportionality.
