Loss Carryback Rulings ‘Absurd,’ Canada CEOs Tell Supreme Court

A top business group is urging Canada’s highest court to overturn two lower court rulings defending the Canada Revenue Agency’s treatment of loss carrybacks, calling the decisions “absurd” and harmful to Canada’s international competitiveness.

The Supreme Court of Canada is scheduled to hear a dispute in January between the agency and the Bank of Nova Scotia over a C$7.93 million ($5.7 million) interest charge stemming from a loss carryback. The Business Council of Canada, a group representing chief executives, is an intervenor in the case and will make oral arguments.

In a filing this week, the Business Council defended the ...