Canadian Potash Producer Loses Deduction Fight in Tax Court

A major potash producer that merged with a rival to become the world’s largest fertilizer company can’t deduct millions of dollars in tax payments when calculating its income tax, a court in Canada has ruled.

A 1974 law barring royalties and taxes to provincial governments from being used for tax deductions applies to over C$59.4 million ($46.2 million) in payments made by Potash Corp. of Saskatchewan Inc. to the Saskatchewan government, Tax Court of Canada Justice John Owen wrote in a judgment posted Wednesday.

Potash merged with Agrium Ltd. in 2018 to form Nutrien Ltd., the world’s largest fertilizer ...