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Tax authority says that Cameco owes $millions to Canada

CRA says Saskatchewan uranium giant Cameco has avoided paying hundreds of millions in Canadian taxes by offshoring profits in Switzerland http://business.financialpost.com/2013/09/25/cameco-cra-tax/  John Greenwood | 25/09/13  The Canada Revenue Agency says Saskatchewan-based Cameco Corp. hasn’t been paying its taxes and it wants the money. Now Saskatchewan premier Brad Wall has joined the fray, calling for Cameco, the world’s largest publicly traded uranium producer, to pay up.

Speaking to reporters this week, Mr. Wall said part of the tax revenue that Ottawa collects ends up going back to the provinces, so when the CRA says it’s not getting what it believes it should, “that’s a concern to [Saskatchewan] as well, and it should be. It doesn’t matter who the company is, or the individual. We should pay taxes that are due.”

At issue is Cameco’s alleged practice of shifting profits to a Switzerland subsidiary where taxes are lower. And while the Cameco case has been going on for several years and though the CRA won the most recent round, the ruling is being appealed and observers say it is unclear who will come out on top.

“The CRA has had a lot of trouble proving some of these cases in court,” said Dennis Howlett, executive director of Canadians for Tax Fairness.

Observers say the practice of transfer pricing as a way to lower tax rates is widespread across corporate Canada, engaged in by many of the biggest and best known players across a swath of industries.

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September 26, 2013 - Posted by | Canada, Legal, Uranium

1 Comment »

  1. The big scandal involving Tony Merchant got swept under the rug and this will to. For Cameco the consequences are higher with development costs increasing at Cigar Lake by a couple of hundred million and rising daily. Lucky for them world demand for their product will probably increase over the next few decades. Shareholders should be outraged they got such a raw deal on forward selling production. Saskatchewan residents should question the royalty CCO pays for each pound of uranium that gets shipped to Ontario to be processed. The unions in Saskatchewan should ask why does Saskatchewan uranium gets shipped out to another jurisdiction to be processed. It appears all Cameco really does is dig valuable dirt out of the ground in Saskatchewan and take it to Ontario and run their financial show out of Switzerland. Brad Wall was happy enough to jump all over BHP yet his government does not have the initiative or imagination to deal with this problem proactively.
    Thanks,

    http://canadaloansearch.com/

    Comment by speedyloansearch | October 23, 2013 | Reply


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