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Court Denies Bank of Nova Scotia Challenge on Tax Deal Interest

Oct. 21, 2021, 10:55 PM

The Bank of Nova Scotia has lost a bid to change the interest Canada’s tax authority charged as part of an agreement reached after a transfer pricing audit.

Tax Court of Canada Judge Susan Wong dismissed the bank’s request that interest on a C$54 million ($44 million) non-capital loss be calculated using a date six years earlier than the one used by the Canada Revenue Agency.

The amount was carried back from the 2008 tax year to the 2006 tax year to offset a transfer pricing adjustment that increased the bank’s income in 2006 by a similar ...

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