{"id":256941,"date":"2025-11-05T14:51:13","date_gmt":"2025-11-05T18:51:13","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=256941"},"modified":"2025-11-05T14:51:14","modified_gmt":"2025-11-05T18:51:14","slug":"ccj-rules-bank-of-nova-scotia-liable-for-withholding-tax-on-cross-border-payments","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/ccj-rules-bank-of-nova-scotia-liable-for-withholding-tax-on-cross-border-payments\/","title":{"rendered":"CCJ Rules Bank of Nova Scotia Liable for Withholding Tax on Cross-Border Payments"},"content":{"rendered":"<div id=\"antig-3979637886\" class=\"antig-ecab antig-entity-placement\"><a href=\"https:\/\/discoverflow.co\/web\/antigua\" aria-label=\"ANU CVP Digital Broadband 1200x400_1\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1201\/h:401\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1201\/h:401\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 1201w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:100\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:1024\/h:342\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 1024w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:256\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 768w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1201\" height=\"401\"   \/><\/a><\/div><div id=\"antig-158824180\" class=\"antig-before-content antig-entity-placement\"><a href=\"https:\/\/www.facebook.com\/medicalbenefitsscheme\" aria-label=\"ce741a73-c70c-446b-af7f-da2abe2b62bb\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1200\/h:400\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/ce741a73-c70c-446b-af7f-da2abe2b62bb.jpeg\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1200\/h:400\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/ce741a73-c70c-446b-af7f-da2abe2b62bb.jpeg 1200w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:100\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/ce741a73-c70c-446b-af7f-da2abe2b62bb.jpeg 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:1024\/h:341\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/ce741a73-c70c-446b-af7f-da2abe2b62bb.jpeg 1024w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:256\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/ce741a73-c70c-446b-af7f-da2abe2b62bb.jpeg 768w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1200\" height=\"400\"   \/><\/a><\/div>\n<p>T<strong>HE CCJ UPHOLDS IMPOSITION OF WITHHOLDING TAX ON PAYMENTS BY BRANCH TO FOREIGN HEAD OFFICE<\/strong>\u00a0\u00a0<strong>Port of Spain, Trinidad and Tobago<\/strong>.<\/p><div id=\"antig-2954050729\" class=\"antig-content_5 antig-entity-placement\"><a href=\"https:\/\/www.facebook.com\/ablpag\" aria-label=\"Full-ABLP-Team-Digital-Billboard-1920x1080px\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1920\/h:1080\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1920\/h:1080\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1920w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:169\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:1024\/h:576\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1024w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:432\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 768w, https:\/\/mlavawteztbj.i.optimole.com\/w:1536\/h:864\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1536w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1920\" height=\"1080\"   \/><\/a><\/div>\n\n\n\n<p> On Tuesday, 4 November 2025, the Caribbean Court of Justice (CCJ) delivered judgment in\u202f<em>Bank of Nova Scotia v Comptroller of Inland Revenue\u00a0<\/em>[2025] CCJ 13 (AJ) LC.<\/p>\n\n\n\n<p> The Court dismissed the appeal by the Bank of Nova Scotia (\u2018BNS\u2019) and agreed with the Court of Appeal of the Eastern Caribbean Supreme Court (Saint Lucia) that payments by BNS Saint Lucia to related foreign associates were subject to withholding tax.\u00a0<br>The case arose from the imposition of withholding tax under the Income Tax Act of Saint Lucia on payments made by BNS Saint Lucia to its Canadian head office and regional subsidiaries for support services. The Court also considered whether interest expenses incurred by BNS in its banking operations could be classified as \u201ccost of sales\u201d under section 39 of the Act, thereby limiting the bank\u2019s deductibles.\u00a0<br>In an opinion authored by\u202fCCJ President, the Honourable Mr Justice Anderson with\u202fJustices Barrow, Jamadar, Ononaiwu, and Eboe-Osuji concurring, the Court held that the payments constituted \u201cmanagement charges\u201d within the meaning of Schedule 3 of the Act and were subject to withholding tax under section 76(1)(b). Applying a purposive approach to statutory interpretation, the Court emphasised that Parliament\u2019s intent in amending the legislation was to capture cross-border remittances from branches to head offices, even if labelled as reimbursements and lacking a profit margin. The Court also upheld the Court of Appeal\u2019s correction of a drafting omission in Schedule 3, finding that the exclusion of the term \u201cbranch\u201d was a clear legislative oversight that could be judicially remedied.\u00a0Mr Justice Eboe-Osuji\u202f(with President Anderson and Justices Barrow, Jamadar, and Ononaiwu concurring) addressed the second issue and held that interest expenses incurred by BNS in its banking operations were properly classified as \u201ccost of sales.\u201d He reasoned that the banking sector involves the sale of financial services and that interest paid on customer deposits is a direct cost of generating income. Drawing on accounting literature, industry practice, and comparative jurisprudence,\u00a0the decision\u00a0emphasised that \u201ccost of sales\u201d is not limited to the sale of goods but includes the cost of services in modern commercial contexts.\u00a0The Court dismissed the appeal and awarded costs to the Respondent in the sum of EC$58,061. Mr Barrie Attzs and Mr Thomas Theobalds appeared for BNS Saint Lucia. Mr Seryozha Cenac and Mr George K Charlemange appeared for the Comptroller of Inland Revenue.\u00a0\u00a0<br>The CCJ\u2019s full decision is available via\u00a0<a href=\"https:\/\/lyoy76xab.cc.rs6.net\/tn.jsp?f=0014yTGg-KqIzcGeSgXtiShROo1j0XQA1Kkv0kRtP4OeVztDjs47xQqltdxe71kpDfPXUty0Pcs6h8KGy5nDswwpIwK0iMlWkOcUsz2v4nefTKxRjO2KPJOfi5r_l5DQxWvk-5D_aapGJY=&amp;c=Z6rMWN0azbSyXy5-DWvfNEizKsziFJR8-hsDdTZJd_1O8GodfiOpmA==&amp;ch=5WGwopgPTyUr061MgKj7MdAQdzCBCFWV5KZYeWA0Dr86-xEyV3iCbw==\" target=\"_blank\" rel=\"noreferrer noopener\">www.ccj.org<\/a>.<br><strong>-End-<\/strong><br><\/p><div id=\"antig-3495052584\" class=\"antig-content_4 antig-entity-placement\"><a href=\"https:\/\/discoverflow.co\/web\/antigua\" aria-label=\"ANU CVP Digital Broadband 1200x400_1\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1201\/h:401\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1201\/h:401\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 1201w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:100\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:1024\/h:342\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 1024w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:256\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2025\/11\/ANU-CVP-Digital-Broadband-1200x400_1-1.jpg 768w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1201\" height=\"401\"   \/><\/a><\/div><div id=\"antig-523275\" class=\"antig-content_12 antig-entity-placement\"><a href=\"https:\/\/www.facebook.com\/ablpag\" aria-label=\"Full-ABLP-Team-Digital-Billboard-1920x1080px\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1920\/h:1080\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1920\/h:1080\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1920w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:169\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:1024\/h:576\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1024w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:432\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 768w, https:\/\/mlavawteztbj.i.optimole.com\/w:1536\/h:864\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2023\/01\/Full-ABLP-Team-Digital-Billboard-1920x1080px.jpg 1536w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1920\" height=\"1080\"   \/><\/a><\/div>\n<div id=\"antig-2751810271\" class=\"antig-in-comments_2 antig-entity-placement\"><a href=\"https:\/\/www.facebook.com\/@hadeedmotorsltd\" aria-label=\"Hadeed_WEB_Banner_MG-2\"><img src=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1000\/h:250\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/Hadeed_WEB_Banner_MG-2.png\" alt=\"\"  srcset=\"https:\/\/mlavawteztbj.i.optimole.com\/w:1000\/h:250\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/Hadeed_WEB_Banner_MG-2.png 1000w, https:\/\/mlavawteztbj.i.optimole.com\/w:300\/h:75\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/Hadeed_WEB_Banner_MG-2.png 300w, https:\/\/mlavawteztbj.i.optimole.com\/w:768\/h:192\/q:mauto\/f:best\/https:\/\/antiguanewsroom.com\/wp-content\/uploads\/2024\/12\/Hadeed_WEB_Banner_MG-2.png 768w\" sizes=\"(max-width: 696px) 100vw, 696px\" width=\"1000\" height=\"250\"   \/><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>THE CCJ UPHOLDS IMPOSITION OF WITHHOLDING TAX ON PAYMENTS BY BRANCH TO FOREIGN HEAD OFFICE\u00a0\u00a0Port of Spain, Trinidad and Tobago. On Tuesday, 4 November 2025, the Caribbean Court of Justice (CCJ) delivered judgment in\u202fBank of Nova Scotia v Comptroller of Inland Revenue\u00a0[2025] CCJ 13 (AJ) LC. The Court dismissed the appeal by the Bank of [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":256942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-256941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.1 (Yoast SEO v24.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CCJ Rules Bank of Nova Scotia Liable for Withholding Tax on Cross-Border Payments - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/ccj-rules-bank-of-nova-scotia-liable-for-withholding-tax-on-cross-border-payments\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CCJ Rules Bank of Nova Scotia Liable for Withholding Tax on Cross-Border Payments\" \/>\n<meta property=\"og:description\" content=\"THE CCJ UPHOLDS IMPOSITION OF WITHHOLDING TAX ON PAYMENTS BY BRANCH TO FOREIGN HEAD OFFICE\u00a0\u00a0Port of Spain, Trinidad and Tobago. On Tuesday, 4 November 2025, the Caribbean Court of Justice (CCJ) delivered judgment in\u202fBank of Nova Scotia v Comptroller of Inland Revenue\u00a0[2025] CCJ 13 (AJ) LC. 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