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METHANEX Trinidad scored a significant victory at the Privy Council in a tax dispute with the Tax Appeal Board (TAB) over withholding tax payments on dividends totalling US$85.4 million for 2007.

In a ruling on April 22, the UK-based court upheld the methanol producer’s appeal in its long-standing tax dispute over the applicability of withholding tax on dividends paid to its holding company.

The case revolved around whether dividends paid by Methanex Trinidad to its sole shareholder, Methanex Barbados, should have been subject to a five per cent withholding tax.