LISTEN: Cameco Dodging Corporate Tax

LISTEN: Cameco Dodging Corporate Tax

Postby Oscar » Fri Sep 20, 2013 10:58 am

LISTEN: Cameco Dodging Corporate Tax - The Morning Edition - Sask - CBC Player

[ http://www.cbc.ca/player/Radio/Local+Sh ... 407370148/ ]

The Canada Revenue agency says Saskatoon based Cameco has been dodging hundreds of millions of dollars in corporate taxes. Geoff Leo with the CBC has been investigating and brought us the story.

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Cameco’s $800-million tax battle

[ http://www.theglobeandmail.com/report-o ... e11665842/ ]

DAVID MILSTEAD Special to The Globe and Mail
Published Wednesday, May. 01 2013, 7:28 PM EDT
Last updated Wednesday, May. 01 2013, 7:28 PM EDT

Did you know one of the largest sellers of uranium in Switzerland is Saskatoon-based Cameco Corp.? The Canada Revenue Agency has been aware for some time. And now Cameco shareholders are getting more details about the potential problems it may cause the company – as in more than $800-million in back taxes.

It wasn’t supposed to work out this way, of course. In 1999, Cameco set up a subsidiary, Cameco Europe Ltd., in low-tax Zug, Switzerland. Cameco then signed a 17-year deal to take the uranium it produces in Canada, sell it to Cameco Europe, and have Cameco Europe make the final sale to the end customers all across the world.

Why inject a middleman into the transaction? Well, Cameco is selling the uranium to Cameco Europe at the low prices reflective of 1999, when the deal was signed. Cameco is recording little to any profit in Canada; instead, all the profits appear in Zug, where the tax rate is lower.

This has been a boon to Cameco’s bottom line. The uranium producer estimates it has avoided declaring $4.9-billion in Canadian income, saving it $1.4-billion in taxes, over the last 10 years.

We know this because Cameco has been fighting the Canada Revenue Agency since 2008 over this matter. The CRA has been slowly reassessing Cameco’s tax returns; it’s finished with 2007 now, and has five more – 2008 to 2012 – to go.

Until Wednesday, when Cameco released its first-quarter earnings, the fight seemed a relatively minor matter, because the company had enough accumulated losses to shield it from exposure to back taxes for the disputed returns of 2003 to 2007.

Each time the CRA reassesses a return, however, the taxpayer owes 50 per cent of the disputed bill. The taxpayer only gets it back if the CRA loses the case. Cameco has now run out of accumulated losses to cover these disputed taxes, as evidenced by a cash payment late last year to cover the 2007 return.

With Wednesday’s earnings, Cameco has provided new disclosure, in which it estimates it may need to cough up $400-million to $425-million in the short term as it waits to find out if it will prevail. (The full tax bill, if Cameco loses the fight, would be $800-million to $850-million, or more than $2 per share.)

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[ http://www.theglobeandmail.com/report-o ... e11665842/ ]
Last edited by Oscar on Sun Sep 22, 2013 5:51 pm, edited 1 time in total.
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LISTEN: Cameco Dodging Corporate Tax - The Morning Edition -

Postby Oscar » Fri Sep 20, 2013 8:50 pm

LISTEN: Cameco Dodging Corporate Tax - The Morning Edition - Sask - CBC Player

[ http://www.cbc.ca/player/Radio/Local+Sh ... 407370148/ ]

The Morning Edition - Sask | Sep 19, 2013 | 10:51

The Canada Revenue agency says Saskatoon based Cameco has been dodging hundreds of millions of dollars in corporate taxes. Geoff Leo with the CBC has been investigating and brought us the story.
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Re: LISTEN: Cameco Dodging Corporate Tax

Postby Oscar » Fri Jun 17, 2016 8:45 pm

Saskatoon man hopes Cameco will consider back tax petition

[ http://globalnews.ca/news/2765181/saska ... -petition/ ]

June 15, 2016 4:41 pm Updated: June 15, 2016 7:14 pm By Joel Senick

WATCH ABOVE: A Saskatoon man has gathered more than 36 thousand signatures in hopes of forcing uranium giant Cameco to pay back what he believe is owed the government in taxes. Joel Senick says the petition has been presented to the company and to the Prime Minister’s Office.

A Saskatoon man is calling on one of the world’s largest uranium producers to pay $2.1 billion in back taxes that stem from a dispute the company is currently in with the Canada Revenue Agency (CRA).

On Wednesday morning, Don Kossick and two others attempted to present a member of Cameco’s executive team with a petition of more than 36,000 signatures demanding the company pay the amount.

Since he did not have an appointment, he was told he could not enter the building, but was able to give a security guard a box containing the information. A similar delivery was made Wednesday on Parliament Hill.

The cross-country effort is related to a court case between Cameco and the CRA. For more than a decade, Cameco has sold uranium to its European subsidiary, which then re-sold the product to customers. The related taxes were collected abroad.

“A lot of that money could go into indigenous communities across Canada, you know, who have not got clean water,” Kossick said at the doorstep of Cameco’s headquarters.

He said he believes the company was hiding their profits in a tax shelter.

MORE:

[ http://globalnews.ca/news/2765181/saska ... -petition/ ]
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