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Glencore Loses Bid to Remove Tax From Fees in Canadian Court (1)

Oct. 22, 2021, 7:17 PMUpdated: Oct. 22, 2021, 8:17 PM

A global mining giant’s Canadian subsidiary can’t remove millions in fees from its taxable income that it received as part of failed acquisition negotiations made decades ago, a court ruled.

Glencore Canada Corp., a subsidiary of Switzerland-based Glencore plc, must count about C$101.6 million ($82 million) in fees as income for the 1996 taxation year because its predecessor, Falconbridge Ltd., received them as a part of its main line of business, Tax Court of Canada Judge Real Favreau said in a judgment released Friday.

The two fees “were inextricably linked to Falconbridge’s ordinary business operations as a nickel mining ...

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