Supreme Court sides with GlaxoSmithKline in tax battle with Ottawa
The GlaxoSmithKline offices in London, Wednesday, April 28, 2010. (AP / Kirsty Wigglesworth)
The Canadian Press
Published Thursday, October 18, 2012 2:24PM EDT
OTTAWA -- The Supreme Court of Canada has sided with GlaxoSmithKline in the drugmaker's battle with the federal government, a decision that could allow foreign companies to reduce their Canadian tax liabilities.
The high court upheld an appeals court ruling that endorsed "transfer pricing" that allows the multinational to charge its Canadian subsidiary high prices for the active ingredient in the ulcer treatment Zantac to reduce its Canadian profits.