Bank of Nova Scotia Tax Fight to Go Before Canada’s Top Court

Canada’s high court will hear a Bank of Nova Scotia tax dispute with the Canada Revenue Agency over C$7.93 million ($5.7 million) in interest stemming from a loss carryback.

The Supreme Court of Canada said Thursday it would hear the bank’s appeal of November’s Federal Court of Appeal ruling that found the tax agency calculated the interest properly.

The bank disagrees with how the agency calculated arrears interest that arose after the bank and the agency reached an agreement dealing with the transfer pricing practices of one of the bank’s foreign subsidiaries for the 2006-2010 period.

Transfer ...