PORTLAND – Maine’s highest court on Tuesday sided with the state in a tax dispute involving Irving Pulp & Paper Ltd.

The Canadian-owned company had challenged the State Tax Assessor’s decision, which held it accountable for nearly $827,000 in taxes and interest for the 1995-1999 tax years.

At issue were the formulas used to calculate Irving’s corporate income tax liability. The company sought to apportion its income in a way that uses its worldwide property, payroll and sales figures.

The Supreme Judicial Court agreed with state tax officials, who used a “water’s edge” approach that looked only within U.S. boundaries to determine any factors in the apportionment formula.