May 1, 2019 8:15 am

Cameco awarded $10M for legal fees incurred in tax dispute with CRA

WATCH ABOVE: Cameco says tax court rules in its favour in dispute with CRA.

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Saskatoon-based Cameco is getting over $10 million in legal costs reimbursed by the federal government.

One of the world’s largest producers of uranium fuel issued a statement on Tuesday, saying the Tax Court of Canada has awarded it $10.25 million.

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Cameco won a court battle with the Canada Revenue Agency (CRA) in September 2018, and applied to have $20.5 million in legal costs repaid.

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

Proceedings started in 2009 when the CRA took Cameco to court. The CRA claimed Cameco was avoiding taxes by selling some of its uranium through a Swiss subsidiary.

At stake was over $2 billion in extra taxes.

CRA has filed a notice of appeal on the trial decision with the Federal Court of Appeal. Cameco officials said they anticipate it will take about two years from the start of the appeal process to receive a decision.

READ MORE: Cameco says Canada Revenue Agency appealing Tax Court ruling

Cameco is also seeking over $17 million to cover legal disbursements and is waiting on that decision.

“I am pleased to see that we have been awarded $10.25 million for legal fees and we are optimistic that we will recover all or substantially all of the $17.9 million in disbursements,” Cameco president and CEO Tim Gitzel said in a press release.

The amount for disbursements will be determined by an officer of the Tax Court, which Cameco expects will happen before the end of this year.

Cameco will issue its first-quarter profit results on May 1.

© 2019 Global News, a division of Corus Entertainment Inc.

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