Canada Tax Court Dismisses Suncor Claim for Millions in Expenses

Canada’s tax court has rejected a Suncor Energy Inc. claim for C$34 million ($25 million) in deductions stemming from property the oil sands company bought to upgrade a mine.

In a ruling published Thursday, the Tax Court of Canada dismissed Suncor’s appeal of a 2017 Canada Revenue Agency tax reassessment that blocked a Suncor partnership from claiming the deductions for capital cost allowances.

The tax authority’s position is consistent with a rule allowing for capital cost allowances to be claimed in the third taxation year after the property is acquired, known as the two-year rolling start rule, Justice Steven ...