- Parties: The appellant was the Bank of Nova Scotia. The respondent was His Majesty the King.

- Subject Matter: In 2015, the appellant bank received a notice of reassessment for its 2006 taxation year, which increased its taxable income by about $1 million and resulted in a small increase in tax. In making the reassessment, the Minister of National Revenue implemented an approximately $55-million audit adjustment, which raised the bank’s 2006 income, and also considered a $54-million loss carryback, which reflected a 2008 non-capital loss. The Minister also imposed interest resulting from the reassessment in the amount of $7,931,087.49. While interest on late payment of tax would generally be calculated on the amount of tax owing (tax on $1 million in this case), a special provision (s. 161(7)) of the Income Tax Act, 1985 applied if a loss carryback or other specified deduction was taken. The Tax Court of Canada confirmed the reassessment imposing interest for late payment of tax. The bank appealed.

- Ruling: The appeal court ruled in the respondent’s favour and dismissed the appeal. The appeal court held that the context and purpose of s. 161(7)(b)(iv) strongly favoured the Crown’s position, though the text left the causal element’s application ambiguous.

- Date: The hearing was set on Oct. 30, 2023. The court released its decision on Nov. 21, 2024.

- Venue: This was a federal case before the Federal Court of Appeal.

- Amount: The appeal court awarded costs in an unspecified amount.