Marzen Artistic Aluminum Ltd. v. The Queen (2014 TCC 194)
I’m don’t know much about this kind of thing, but it doesn’t sound good for Barbados. According to our Google Alerts, the tax sector is abuzz with this latest Canadian ruling that runs 80 pages. (download the ruling here – PDF)
Comments from the cheap seats?
In a lengthy set of reasons, the Tax Court upheld all but a fraction of the CRA’s reassessment of the taxpayer, such reassessments having disallowed the deduction of approximately $7.1M of fees paid by the Canadian taxpayer to its Barbados subsidiary. The Court also upheld the imposition of a penalty under subsection 247(3) of the Act…
… from Dentons Tax Litigation blog: Marzen: Artistic Barbados tax plan defeated
Barbados Free Press 
this is not good for our offshore banking business sector for sur!
It’s BAD for Barbados but GOOD for Canada and other G7 countries.. Barbados has always been known as a LOW/NO TAX HAVEN, the G7 countries are now shutting down these tax shelters. The free ride is ending for Barbados. Take note of all the Canadian offshore countries that have left Barbados in the last 2 years, most fleeing to other less regulated Caribbean Tax Havens.
This stuff is way too complicated for DD, but there can be no doubt that there will be many more of these “Barbados Structure” transfer pricing schemes (scams?) shut down.
Thank goodness that Barbados is negotiating a double taxation treaty with Malaysia, so the Malaysians can replace the Canadian offshore businesses when they are shut down.
@DD
“Malaysians can replace the Canadian offshore businesses when they are shut down.”
Problem is Malaysians can’t even keep track of their airplanes, what do you think would happen to your Bajan money with skilled crooks in-charge.!