October 26, 2018 9:37 am

Cameco says Canada Revenue Agency appealing Tax Court ruling

Saskatoon-based Cameco says the Canada Revenue Agency is appealing a Tax Court decision on the use of a subsidiary to sell and trade its uranium.

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Cameco Corp. says the Canada Revenue Agency is appealing a Tax Court decision that was in the company’s favour.

The Saskatoon-based uranium miner estimates it will take about two years for the Federal Court of Appeal to hear and decide the case.

READ MORE: Cameco says tax court rules in its favour in dispute with CRA


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“We are disappointed that the CRA has taken this action after such a clear and decisive ruling from the Tax Court,” said Tim Gitzel, Cameco’s president and CEO, in a statement.

“We will continue through the appeal process and expect the appeal to be decided in our favour as well.”

Last month, Cameco said the Tax Court ruled its favour in the case which centred around its use of a subsidiary in Switzerland to sell and trade its uranium.

The CRA contended it was a sham established to avoid Canadian taxes, while Cameco maintained it was for legal and sound business practices.

READ MORE: Cameco reports net earnings of $55M in 2018 Q1

Despite the CRA appeal, Cameco said it will be making an application to the court to recover costs incurred over the course of this case.

Cameco noted that decisions of the Federal Court of Appeal may be appealed to the Supreme Court of Canada, if the top court agrees to hear the appeal.

© 2018 The Canadian Press

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