- The Federal Court of Appeal has settled a lengthy tax dispute between uranium company Cameco (TSX:CCO) and the Canada Revenue Agency
- Canada’s Tax Court previously ruled in favour of Cameco back in 2019, finding that the company’s subsidy structure and intercompany uranium sales agreements adhered to the tax code
- With the appeal settled, the Canada Revenue Agency can now choose to appeal the decision again, bringing the case to Canada’s Supreme Court for further evaluation
- Following the ruling, Cameco is now asking the government to return the C$303 million in cash and $482 million in letters of credit that was held during the proceedings
- Cameco (CCO) is up two per cent and is trading at $13.79 per share
The Federal Court of Appeal has settled a lengthy tax dispute between uranium company Cameco (TSX:CCO) and the Canada Revenue Agency.
The dispute regarded Cameco’s 2003, 2005 and 2006 tax years, following a reassessment by Canada Revenue Agency. This is the fourth time a judge has ruled in favour of the company, since the dispute was first raised in 2008.
Canada’s tax Court previously ruled in favour of Cameco back in 2019, finding that the company’s subsidy structure and intercompany uranium sales agreements adhered to the tax code.
Last year, the Tax Court awarded Cameco C$10.25 million in legal fees and up to $17.9 million in disbursements to settles costs incurred during the dispute with the Canada Revenue Agency.
The CRA appealed the ruling and the award, which ini ally brought the case to the Court of Appeal. The CRA can now choose to appeal the decision again, bringing the case to the Canada’s Supreme Court for further evaluation.
Failing a further appeal, the dispute will be considered resolved and Cameco will now ask the government to return the $303 million in cash and $482 million in letters of credit which is currently being held as part of the dispute.
Cameco’s President and CEO, Tim Gitzel is pleased that the Court of Appeal has upheld the Tax Court’s initial ruling.
“We followed the rules, yet this 12-year dispute has caused significant uncertainty for our company and our stakeholders at a time when we have been navigating through some of the most challenging global market and economic conditions we have ever faced.
“We therefore hope CRA accepts the Court of Appeal’s decision and applies it to subsequent tax years so that we can finally move on from this dispute and focus on managing our business for the benefit of all our stakeholders,” he said.
Cameco (CCO) is up two per cent and is trading at $13.79 per share at 1:07pm EDT.
