The Resource GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201

GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201

Label
GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201
Title
GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201
Creator
Contributor
Subject
Language
eng
Summary
Judgment by the Federal Court of Appeal dated 26 July 2010. GlaxoSmithKline (GSK) was the Canadian member of the international Glaxo group which marketed the drug Zantac which it imported. GSK paid a related Swiss company about five times as much as other importers paid for generic drugs with the same active ingredient, ranitidine. The revenue assessed GSK for withholding tax on the dividends it paid the group in respect of the difference between the prices it paid the Swiss company and the prices paid by importers of the generic equivalents. GSK objected, arguing that the prices it paid were proper due to differences between Zantac and GSK's business on the one hand and generic drugs and their importers' business models on the other. GSK also argued that the transfer pricing regime did not apply as there was no payment to the benefit of the other party since the Swiss company was a loss maker, and also that it was a requirement that the taxpayer, the Glaxo group, would otherwise have been entitled to that sum. The Tax Court considered that the licence agreements within the Glaxo group were not a relevant consideration and essentially agreed with the revenue's model, adding a small amount to the price actually paid to account for some differences in the product imported by the taxpayer compared with the generic product. The Federal Court of Appeal allowed the taxpayer's appeal and remitted the case back to the Tax Court
Citation source
In: International tax law reports. - London. - Vol. 13 (2010),
http://bibfra.me/vocab/relation/comm
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http://library.link/vocab/creatorName
Nikolakakis, A
Language note
English
http://library.link/vocab/relatedWorkOrContributorName
Baker, P
http://library.link/vocab/subjectName
  • case law
  • transfer pricing
  • arm's length principle
Label
GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201
Instantiates
Publication
Label
GlaxoSmithKline Inc v Her Majesty the Queen : 2010 FCA 201
Publication

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