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Canadian court rules in favor of Cameco in tax dispute

Published 2018-09-27, 08:43 a/m
© Reuters.  Canadian court rules in favor of Cameco in tax dispute
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Sept 27 (Reuters) - Canadian uranium producer Cameco Corp CCO.TO said on Thursday the Tax Court of Canada ruled in its favor over a dispute on the reassessments the Canada Revenue Agency (CRA) issued, sending its U.S.-listed shares up about 16 percent in premarket trading.

Cameco, which settled a U.S. tax dispute last year, came under scrutiny from Canadian tax authorities due to its offshore marketing structure and transfer pricing.

The company sells uranium to its marketing unit in Switzerland, which re-sells it to buyers, incurring less tax than the company would through its Canadian office.

The court has found Cameco to be in full compliance of Canadian laws in relation to the reassessments for the years 2003, 2005, and 2006, the company said in a statement.

"We hope CRA accepts the decision and applies it to other tax years in dispute," Cameco's Chief Executive Officer, Tim Gitzel said.

Since 2008, the CRA has disputed Cameco's corporate structure and the related transfer pricing methodology for certain intercompany uranium sale and purchase agreements.

For the years 2003 through 2012, the CRA had issued reassessment notices for about C$4.9 billion of additional income for tax purposes. The regulator had also issued notices for transfer pricing penalties for the years 2007 through 2011.

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