Transfer Pricing at Cameco Corporation:
1. Estimate the increased tax liability on Cameco if CRA wins the lawsuit against the company.
2. What is the impact of the estimated tax increases on Cameco’s stock price?
3. Analyze Cameco’s transfer pricing policy from an ethical point of view. If you were the CEO at the time when Cameco created the European subsidiary and entered the pricing contract, would you have approved the transfer pricing policy?
4. What are the regulatory issues involved in this case and what can be done to avoid such issues in the future?