Department of Justice lawyer Elizabeth Chasson said Loblaw Financial Holdings took steps to have Barbados-based Glenhuron Bank Ltd. appear to be a foreign bank in order to avoid paying tax. TORONTO—Loblaw Companies Ltd. and the Canada Revenue Agency faced off in Tax Court on Monday over allegations that the retailer’s Barbadian banking subsidiary had been misused for tax avoidance — a long-running dispute that could cost the retailer more than $400 million. Meghji argued Glenhuron was a bank according to the laws of Barbados and viewed as such by the Caribbean country’s central bank. Glenhuron was incorporated in 1992 and liquidated in 2013, when Loblaw decided to use that capital domestically to buy Shoppers Drug Mart, Meghji added. “Loblaw anticipates that the evidence will show that the minister’s theory is without foundation,” Meghji told the court.

Source: thestar April 23, 2018 20:03 UTC