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Canada Claims Loblaw Avoided Taxes Using Barbados Branch

May 13, 2021, 8:21 PM

Canada sought to convince the Supreme Court Thursday to overturn a court ruling allowing the nation’s largest retailer Loblaw Companies Ltd. to not pay taxes on C$473 million ($389 million) of income.

The Federal Court of Appeal was wrong to decide Loblaw shouldn’t absorb the income of its wholly owned subsidiary, Barbados-based Glenhuron Bank Ltd., because the subsidiaries’ main business activity was to invest money that Loblaw sent, a Justice Department lawyer told the court.

“Glenhuron was a financial institution whose business was to make money from money,” general counsel Eric Noble said.

The April 2020 appeal court ...

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