Business
Taiga Building Products Ltd. announces tax reassessment settlement and new dividend policy
BURNABY, BC, October 15, 2008 /CNW/ - Taiga Building Products Ltd. ("Taiga" or the "Company") (TS...
About this update from Taiga Building Products Ltd.
[{"type":"text","content":"\n\n\n\nBURNABY, BC, October 15, 2008 /CNW/ - Taiga Building Products Ltd.\n("Taiga" or the "Company") (TSX: TBL & TBL.NT) announced today that it has\nsettled its provincial income tax reassessment (the "Reassessment") and agreed\nto pay a total amount of $9.6 Million (the "Settlement Amount"). Taiga refers\nyou to its press releases of May 16, 2007 and May 28, 2008, and other\nfinancial disclosure, for further description.\n\n\nTo date, Taiga has already paid $1.8 Million of the Settlement Amount in\ncash and the balance is expected to be paid by October 30, 2008.\n\n\nAs at March 31, 2008, Taiga had already expensed $8.6 Million of the\nSettlement Amount in its financial statements and the balance, being\n$1.0 Million, will be accounted for in the 2nd fiscal Quarter ended September\n30, 2008.\n\n\nThe Reassessment was the result of an intra-corporate tax financing\nstructure arranged and sold by Deloitte and Touche, the Company's advisors and\nauditors at the time. Taiga has launched a lawsuit against Deloitte and Touche\nfor, among other things, breach of contract, breach of fiduciary duty and\nprofessional negligence. Taiga is claiming a return of all costs arising from\nthe failed plan including in excess of $725,000 paid as contingency fees.\nDeloitte and Touche has counterclaimed against Taiga for additional\ncontingency fees. As a result of the inherent uncertainty of litigation, Taiga\ncannot predict the outcome of such actions.\n\n\nIn connection with the Reassessment settlement, Taiga announces a revised\nDividend Policy. Pursuant to the revised policy, the Company intends to pay\ndividends on its common shares equal to 25% of the prior fiscal year's Net\nEarnings. This revised policy is designed to link dividends more directly to\naccomplishment. Taiga will discontinue its current monthly Dividend Payment\nPolicy of $0.015 per share per month. The last payment will be on October 15,\n2008 for the month ended September 30, 2008.\n\n\nDividend payments under the revised policy will occur bi-annually on each\nJuly 15th, (or the first business day thereafter) and each January 15th (or\nthe first business day thereafter) to be paid to the shareholders of record on\nJune 30th and December 31st (or the first business days thereafter).\n\n\nIn the current fiscal year, Taiga has al...