Appeals court sides with Cameco
The Federal Court of Appeal upheld a September 2018 decision by the Tax Court of Canada.
The 2018 decision, which had been appealed by Canada Revenue Agency (CRA), was decided in Cameco’s favor over a reassessment issued by CRA for the 2003, 2005 and 2006 taxes. The dispute related to transfer pricing methodology used for certain intercompany uranium sales and purchasing agreements.
“We are very pleased that the Court of Appeal has unanimously upheld the Tax Court’s clear and decisive ruling in our favor,” said Cameco president and CEO Tim Gitzel in a news release. “Four judges have now found that Cameco complied with both the letter and intent of the law. 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.”
The CRA can appeal to the Supreme Court. It will need to make a filing before September 25, 2020.
Last year, the Tax Court awarded Cameco $10.25 million in legal fees and up to $17.9 million in disbursements for costs incurred as a result of its dispute with CRA. If the CRA chooses not to appeal to the Supreme Court, another payment of about $5.5 million will be required, as well as interest and other charges.