Saskatoon based uranium company, Cameco is quite pleased with the latest ruling from the tax court.
The court has ruled in Cameco’s favour following a CRA dispute were the uranium company’s income from its subsidiary Cameco Europe Limited was sent back to Canada were Canadian statutory tax rates, interest and penalties were applied.
The ruling applies to the 2003, 2005 and 2006 tax years.
President and CEO of Cameco, Tim Gitzel said he has no worries about the CRA possibly appealing the decision.
Gitzel says the material provided in the case is concise, and comprehensive.
The president and CEO adds the decision of the 2003, 2005 and 2006 tax years is expected to be relevant to subsequent years and in that scenario the total potential cash taxes and transfer pricing penalties owing were estimated to be between 1.95 to 2.15 billion dollars.
Cameco says the decision only relates to those three tax years, but it believes nothing in the decision would warrant a different outcome for other tax years.