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The Supreme Court of Canada has brought some clarity to "transfer pricing"—an accounting method in which a multinational company charges for the products, IP licenses, and various services that it provides to a foreign subsidiary. On Thursday, in a win for Glaxo Smith Kline and its lawyers at Osler, Hoskin & Harcourt, the court ruled unanimously that the Canadian government had to take into account more than just the market price of a product when assessing whether a company's transfer pricing was reasonable.
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