Representative Matter
Consent Judgment Obtained in Transfer Pricing Dispute Regarding Hybrid Debt Financing Structure
October 30, 2026
On October 30, 2026, the Tax Court of Canada issued a consent judgment in General Cable Company Ltd. v. The King, allowing the appeal in full. This is the first case to be resolved among a group of appeals relating to the CRA’s use of the transfer pricing “recharacterization” rules in former paragraphs 247(2)(b) and (d) of the Income Tax Act. The appeals challenge hybrid debt financing structures involving forward subscription arrangements.
Identifying and reassessing taxpayers that implemented such structures has been a major CRA audit and enforcement project since the CRA published a Notice to Tax Professionals in 2019.
Aird & Berlis acted as counsel for General Cable in the appeal with a team including Christopher Slade, Jacob Brown and Rebecca Skinner (Tax).