A legal battle between Saskatoon’s Cameco Corporation and the Canada Revenue Corporation looks like it won’t be ending anytime soon.
CRA has appealed a recent federal tax court decision that ruled in favour of the uranium mining company.
The ruling means Cameco doesn’t owe $483 million in back taxes from 2003, 2005 and 2006.
The ruling came down on Sept. 26.
The appeal continues CRA’s ongoing dispute with Cameco over how sales and purchase agreements to its European subsidiaries are taxed.
“We believe the appeal will be decided in our favour,” Cameco communications manager Carey Hyndman says. ” We don’t expect a different outcome than we had from the original decision, but either side can appeal to the Supreme Court of Canada.”
The Canada Revenue Agency had 30 days to appeal the decision.
“We are disappointed that the CRA has taken this action after such a clear and decisive ruling from the Tax Court,” CEO Tim Gitzel says in a released statement. “We do not agree with their remaining grounds for appeal. We hope to have a reasoned discussion with the CRA to see if we can reach a resolution for all years based on the principles laid out in the ruling.”
Cameco says it will be making an application to the court to recover substantial costs incurred over the course of the case.
(PHOTO: McArthur River uranium site. Photo courtesy of Cameco.)