Student Paper Award

The Canadian Tax Foundation-Fasken Martineau Dumoulin Award for Ontario 2012-13

Jason T. Kujath

The Canadian Tax Foundation is pleased to announce that Jason T. Kujath is the winner of the Canadian Tax Foundation-Fasken Martineau DuMoulin Award for the best Ontario student paper of 2012-13 dealing with an aspect of Canadian taxation.

Mr. Kujath’s paper, “Canada v GlaxoSmithKline: Should We Modify the Arm’s Length Principle?” was written for the Juris Doctor program at the University of Windsor. Mr. Kujath graduated from the Juris Doctor program at the University of Windsor, Faculty of Law, and holds a Bachelor of Commerce degree in finance. He is currently completing his articles at Felesky Flynn llp in Calgary.


The author provides a review and commentary on the first transfer-pricing case heard by the Supreme Court of Canada. He discusses the handling of transfer prices as applied by the Canada Revenue Agency (CRA) and the Canada Border Services Agency (CBSA). 

The paper addresses the Supreme Court’s guidance on the proper valuation and assessment of transfer prices. The author opines that the court did not provide a complete approach for a proper assessment of the remitted goods’ valuation. He argues that appropriate guidance should specify the breadth of the circumstances considered under subsection 69(2)’s hypothetical inquiry; instead, the court concluded that the “business reality” should be considered. 

The author also provides a critical analysis of the arm’s-length standard and highlights four considerations:

1. the arm’s-length principle in relation to its subjective application;

2. a review of the subjective circumstances that should be considered when thearm’s-length principle is applied to the commercial transactions of multinational entities;

3. the competing interests of the cra and the cbsa; and

4. the international economic competitiveness of the jurisdiction.