Scotiabank sues Peru before ICSID, why?

The major shareholder of Scotiabank Peru, the Bank of Nova Scotia of Canada, has filed an arbitration claim against the Peruvian state with the International Center for Investment Dispute Settlement (ICSID).

Required prior to collection default percentageprovided by Sunat and the Tax Court, in the amount of approximately S$482 million.

Recall that in November 2021, the Constitutional Court declared the claim of Scotiabank Peru to the tax authorities unacceptable.

Financial institution sued Sunat in connection with the collection of late payment interest in the amount of SGD 482 million, which was formed in the form of a tax debt of the company, while the decision of the tax court took time to comply.

This debt was originally S$48 million and was formed in January 1999 as a result of a review procedure at Banco Wiese, today Scotiabank, to verify compliance with the IGV payment.

Scotiabank paid out S$482 million pending a pending cashback with a positive ruling on the lawsuit, but TC ruled in favor of the tax authorities.

Considering this, financial institution issues of “improper application of penalties for the period since the statutory time limit for Sunat and the Tax Court to resolve a General Sales Tax tax claim that was finally resolved by Ordinance No. 14935-2013 after an administrative procedure lasting approximately 14 years.”

This request for arbitration to ICSID, submitted on behalf of Scotiabank Peru, is subject to Articles 819 and 820 of the Peru-Canada Free Trade Agreement.