Canada High Court Declines to Take Up Excess Dividends Tax Case

A group of Canadian companies must pay tax on C$110 million ($80 million) in dividends they paid out after Canada’s top court declined to hear their appeal of lower court rulings.

The Supreme Court of Canada denied Thursday an appeal application by three corporations controlled by James Grenon, an investor in Canada’s oil and gas sector. They sought high court action on a Federal Court of Appeal ruling from November that backed the Canada Revenue Agency’s determination that they have to pay taxes on dividends they paid to Grenon because they’re classified as excess dividends.

Excess dividends arise when dividends ...