Business
Cameco Pleased as Supreme Court Dismisses CRA Leave to Appeal
SASKATOON, Saskatchewan, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Cameco (TSX: CCO; NYSE: CCJ) received notice that the Supreme Court of Canada has dismissed Canada
About this update from Cameco Corporation
[{"type":"text","content":" SASKATOON, Saskatchewan, Feb. 18, 2021 (GLOBE NEWSWIRE) -- Cameco (TSX: CCO; NYSE: CCJ) received notice that the Supreme Court of Canada has dismissed Canada Revenue Agency’s (CRA) application for leave to appeal the June 26, 2020 decision of the Federal Court of Appeal. The dismissal means that the dispute for the 2003, 2005 and 2006 tax years is fully and finally resolved in Cameco’s favour. “We are pleased that the Supreme Court of Canada has rejected CRA’s appeal request. It’s another win for Cameco in this long-running tax dispute,” said Cameco president and CEO Tim Gitzel. “We have consistently followed the rules and complied with both the letter and intent of the law. This was confirmed unequivocally through the court process, and we are happy to have these three tax years concluded in our favour.” In September 2018, the Tax Court of Canada ruled that Cameco’s marketing and trading structure involving foreign subsidiaries, as well as the related transfer pricing methodology used for certain intercompany uranium sales and purchasing agreements, were in full compliance with Canadian law for the tax years in question. CRA appealed this decision to the Federal Court of Appeal, which in June 2020 again ruled definitively in Cameco’s favour and upheld the Tax Court’s finding. CRA sought leave to appeal the Court of Appeal’s decision to the Supreme Court. Today the Supreme Court denied that request. Cameco expects to receive a refund of $5.5 million plus interest for amounts paid on previous reassessments issued by CRA for 2003, 2005 and 2006, as well as the $10.25 million in legal fees and up to $17.9 million in disbursements for costs awarded to us by the Tax Court and the Court of Appeal in previous rulings. The timing of receipt of these payments is uncertain. “It has been incredibly disheartening for us, as a Canadian company, to have an agency of our federal government continue to pursue a flawed argument for 13 years, even after receiving two court decisions completely in our favour during that time,” Gitzel said. “In the meantime, we have had to navigate through a period of challenging global markets and the unprecedented economic upheaval of the COVID-19 pandemic with the uncertainty caused by this tax dispute significantly impeding our ability to maneuver. To say it has been unfair to our employees and the many other ...