Conrad Black Loses Appeal on Federal Court Ruling on Back Taxes

December 10, 2014 Updated: December 10, 2014

TORONTO—Conrad Black has lost his appeal to overturn a federal Tax Court decision that says he owes back taxes from 2002.

The Federal Court of Appeal says that Black, despite his arguments otherwise, was a Canadian resident at the time and that means he owes money to the Canada Revenue Agency. The court also said Black should pay taxes on all income earned outside the United Kingdom, not just his Canadian income.

The decision follows an appeal filed earlier this year by Black’s lawyers who argued the former media baron was, for tax purposes, a resident of the United Kingdom in 2002.

The government has estimated the amount of income and benefits Black owes taxes on may be as high as $5.1 million.

Black served 37 months in U.S. prison for convictions on fraud and obstruction of justice relating to his time as the head of media giant Hollinger. An appeal court tossed out two additional fraud convictions against him and against two other Hollinger executives.