Canada Revenue Agency Seeks Leave to Appeal Federal Court of Appeal Decision
SASKATOON, Saskatchewan, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Cameco (TSX: CCO; NYSE: CCJ) received notice today that Canada Revenue Agency (CRA) has sought leave from the Supreme
Court of Canada (Supreme Court) to appeal the June 26, 2020 decision of the Federal Court of Appeal, which found in favour of Cameco in its dispute of reassessments issued by CRA for the 2003, 2005
and 2006 tax years.
“After two clear and decisive rulings in our favour from the Tax Court of Canada and the Federal Court of Appeal that confirmed we complied with both the letter and intent of the law, it is incredibly disheartening and unfair for our employees, communities and many other stakeholders to be once again thrown into uncertainty as a result of CRA’s actions,” said Cameco president and CEO Tim Gitzel.
“Cameco’s position has prevailed at every stage of the legal process,” Gitzel said. “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,” Gitzel said.
The Supreme Court will decide whether to hear the appeal or decline CRA’s request for leave. If the appeal proceeds, Cameco estimates that it could take until the second half of 2022 before a decision is rendered.
If leave to appeal is not granted, then the dispute over the three tax years in question is resolved in Cameco’s favour. Based on prior court decisions, Cameco is entitled to a refund of $5.5 million plus interest for instalments the company paid on previous reassessments issued by CRA for the 2003, 2005 and 2006 tax years, costs in the amount of $10.25 million for legal fees incurred, and an amount for disbursements of up to $17.9 million. Timing of any payments is uncertain.
“Cameco has consistently worked hard to be a good corporate citizen,” Gitzel said. “We have invested billions of dollars in Canada, contributed considerably to the well-being of our communities, and been recognized as one of Canada’s leading partners, employers and supporters of Indigenous people. Even as we have managed our way through the extraordinary challenges posed by the COVID-19 pandemic, we have not laid off any of our employees and have continued to provide support to our communities.