Transfer pricing used by multinational corporations to lower its tax burden, thus inflating the consolidated income, can have essential implications for the stakeholders, as fund manager for Saskhedge fund found hard route. A stock investment manager had made Cameco Corporation and subsequently dropped it worth by 20 per cent.
In addition, Canada Revenue Agency has commenced a litigation against the company for alleged tax avoidance concerning the company's transfer pricing practices with its Swiss subsidiary. The suit could result in an additional tax liability of $800 million to $850 million. The supervisor must explain to the investment board the implications of the litigation on the stock price and inform the board on whether the proposed $800 to $850 million is a fair estimate.
\Transfer Pricing at Cameco Corporation Case Study Solution
PUBLICATION DATE: August 14, 2014 PRODUCT #: W14368-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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