1. Canada

Monetary threshold for LF preparation

• Not applicable

Preparation deadline

• By the due date for filing the company’s tax return, which is within 6 months after the end of the fiscal year.

  • Reference: Subsection 247(1) of the Income Tax Act

Submission deadline

• Within 3 months of a request by the tax authorities.

  • Reference: Transfer Pricing Memorandum 05R2

Language

• English or French

Penalty

• A penalty of 10% of the transfer pricing adjustment may be imposed.

  • Reference: Subsection 247(3) of the Income Tax Act