The Canada Revenue Agency is examining the tax affairs of Eli Lilly Canada, according to a report published Monday.

The CRA reportedly found that some revenues recorded by the Canadian arm of the U.S. pharmaceutical company were lower than it expected and suspects that the company may not have paid enough taxes for the 2020 tax year.

The development could attract attention because Eli Lilly is one of the world's major pharmaceutical companies, with a significant Canadian operation and a portfolio of widely used medicines.

A tax review by the CRA does not by itself establish wrongdoing. Companies can challenge tax assessments through Canada's established legal and administrative processes.

The case also highlights the complexity of international corporate taxation, particularly when multinational companies operate through subsidiaries in different countries.

For Canadian policymakers, tax authorities and businesses, the situation could add to ongoing discussions about how multinational pharmaceutical companies report Canadian revenues and determine their taxable income.

The CRA's review will now be closely watched as the agency assesses the company's tax position and any potential amount that could ultimately be disputed or recovered.