Canada's Court of Appeal has overturned a 2015 ruling by the Tax Court that disallowed an interest deduction by a Canadian subsidiary of the Wendy's/Tim Horton group (subsequently split) for an intragroup loan made in 2002.
Background
The case involved a series of transactions between 18 March 2002 and 27 March 2002 as follows:
- Wendy's International Inc. (Wendy's), the ultimate parent of the group, loaned CAD 234 million to its U.S. subsidiary, Delcan Inc. (Delcan), at an interest rate n…