(Toronto – 12 October 2010) As multinational corporations continue to be faced with increasingly comprehensive transfer pricing audits, Ernst & Young has again been named the number-one transfer pricing firm in Canada by International Tax Review.
“As predicted, the Canada Revenue Agency (CRA) and other major tax administrations have stepped up enforcement, leading to increased controversy as jurisdictions vie over the same taxable income,” said Sean Kruger, incoming leader of Ernst & Young’s Canadian Transfer Pricing practice. “This award is a testament to our firm’s ability to stay ahead of the curve and meet the growing demand to help our clients work more effectively with tax administrators around the world.”
Transfer pricing deals with the valuation of cross-border transactions between related entities. It has proliferated as commerce has globalized. Ernst & Young has significantly invested in its Transfer Pricing practice in recent years, more than tripling the size of its group since 2005. In the past 12 months alone, the Canadian firm admitted eight senior professionals, all of whom bring extensive governmental experience, having worked at either the CRA or the Department of Justice Canada. In addition, the significant professional services consulting experience of key team members means that they bring a complete set of skills and perspectives to Ernst & Young’s clients.
Greg Noble has led Ernst & Young’s Canadian Transfer Pricing practice for the past three years, and says there has been a steady increase in the level of scrutiny that the CRA and other tax jurisdictions have been dedicating to transfer pricing audits: “We have seen the CRA add significant technical strength to its financial services team and broader economics team. In order to best serve our clients, we have mirrored these same investments at Ernst & Young. As the stakes get higher we have also added significantly to our ex-governmental officials — we need increased insight to the inner workings of the tax administration in Canada and abroad.”
Noble accepted the honours on behalf of Ernst & Young in Canada at the International Tax Review Americas Awards, held in New York on September 29, 2010. The awards recognize the most-innovative tax planning, structuring, pricing and transfer pricing work from the past 12 months.
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