Marzen Artistic Aluminum Ltd. v. The Queen, 2014 DTC 1145 [at at 3433], 2014 TCC 194, aff'd 2016 DTC 5018 [at 6600], 2016 FCA 34 -- summary under Subsection 247(4)

"Marketing fees" paid by taxpayer to its Barbados subsidiary were found to be well in excess of the arm's length amount mandated by s. 247(2). When CRA requested contemporaneous documentation under s. 247(4)(c), taxpayer's counsel provided copies of agreements creating the Barbados structure, correspondence regarding the fees and a study as to how to increase sales in the U.S. These documents did not show how the quantum of the fees was arrived at, and Sheridan J found that the requirements of s. 247(4)(a)(v)and (vi) had not been satisfied. Accordingly the taxpayer was deemed not to have made reasonable efforts, and was liable to a penalty under s. 247(3).