ROUGEMONT, QC, June 16 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A - TSX) announces that it has reached an agreement with the Canada Revenue Agency, the Ministry of Revenue of Ontario, and Revenu Quebec to resolve matters arising from the notices of assessment issued following the Quebec government's enactment of Bill 15 in June 2006, which amended the Taxation Act with retroactive effect.
Upon the enactment of Bill 15, the Company recorded an unusual current income tax expense of $3,730,000 and a non-recurring and non-deductible interest expense of $343,000 in its financial statements for the second quarter of 2006. The Company also made provisions for the related interest in each subsequent quarter. An amount of $332,000 related to the unusual income tax expense was paid in 2007.
The agreement provides for the payment of $2,143,000 in current income taxes plus the related interest computed from April 1, 2008 to the present date. These amounts will be payable within 14 days following the receipt of the new notices of assessment that give effect to the agreement.
The Company's financial statements dated March 29, 2008, included a provision for income taxes payable associated with Bill 15 in the amount of $3,398,000 and a provision of $1,046,000 for the related interest. The Company therefore expects to record, in the second quarter of 2008, a $1,255,000 decrease in the current income tax expense and an estimated net decrease of $1,013,000 in financial expenses, resulting in a net earnings increase of $2,268,000, or $0.34 per share. This amount represents the difference between the amounts claimed under the agreement and the balances of the provisions for financial expenses and income taxes payable, associated with Bill 15, recorded in the Company's balance sheet.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a Canadian leader in the development, manufacturing, and marketing of a wide range of fruit and vegetable juices and drinks, and fondue bouillons and sauces. The Company also produces and markets certain specialty food products such as canned corn-on-the-cob, meat marinades, barbecue sauces, brunch beans, pasta sauces, tapenades and bruschetta topping. Finally, the Company packages and markets imported wines from various countries. Nearly 1,200 employees contribute to the Company's growth and to offering customers quality products.
%SEDAR: 00002099EF