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Be the first with the news that moves the market- A new appeal from the Canada Revenue Agency is threatening to bring Cameco’s (CCO) long-standing tax dispute back to Federal Court
- The CRA claims Cameco did not properly disclose its revenue in the 2003, 2005 and 2006 tax years
- Both the Tax Court of Canada and the Federal Court of Appeal have already ruled in favour of Cameco, stating the company complied with the letter and intent of the law
- Nevertheless, the Canada Revenue Agency is now contesting the Federal Court of Appeal’s latest ruling, which was made back in June this year
- As Cameco continues to deny the allegations, the appeal could extend a decision on the case in 2022
- Cameco (CCO) is up 0.71 per cent and is trading at C$12.75 per share
A new appeal from the Canada Revenue Agency is threatening to bring Cameco’s (CCO) long-standing tax dispute back to Federal Court.
The case disputes Cameco’s disclosure of revenue in the 2003, 2005 and 2006 tax years. Both the Tax Court of Canada and the Federal Court of Appeal have already ruled in favour of Cameco, stating the company complied with both the letter and intent of the law.
Nevertheless, the Canada Revenue Agency is now contesting the Federal Court of Appeal’s latest ruling, which was made back in June this year. While a second appeal isn’t unexpected, it could further protract the case’s resolution into 2022.
That said, this is the final appeal process, meaning this decision is final and will ultimately settle the contention behind Cameco’s tax practices.
Cameco President and CEO Tim Gitzel said it was incredibly disheartening and unfair for the company’s employees, communities and many other stakeholders to be once again thrown into uncertainty as a result of CRA’s actions.
“If CRA feels the laws aren’t accomplishing what they want, then the government should change the laws moving forward and not pursue the same arguments over and over again before a different court and expect a different outcome.
“However, if leave to appeal is granted, we remain confident in our position,” he added.
So far, the case has cost Cameco more than C$10 million in legal fees and has tied up more than $303 million in cash and $482 million in letters of credit, which is currently held by the Canadian Government, until the matter is finally settled.
Cameco (CCO) is up 0.71 per cent and is trading at $12.75 per share at 12:31pm EDT.
