The Supreme Court of Canada’s Declination to Hear the Appeal of the CRA from Its Loss Before the FCA
October 20th, 2020, was a decisive day when the Canada Revenue Agency (CRA) sought leave from Canada’s Supreme Court. This was to appeal the FCA decision that was revealed on the June 26th, 2020 decision which was in favour of Cameco. The decision surrounded Cameco’s reassessment disputes for the tax years 2003, 2005, and 2006.
In this post, we will study the subject matter in detail:
What does the CEO have to say?
As per the Cameco president and CEO, the decisive rulings were unfair and disheartening for all the Cameco employees, stakeholders, and communities. He also stated that all the stakeholders have yet again been pushed into uncertainty because of the CRA. The CEO also adamantly said that if the CRA felt that the laws weren’t achieving what they wanted, there should have been a total change in laws. This would have been far better than repeating the same arguments in different courtrooms over and over again and expecting a different outcome every time.
What are we expecting?
CEO Gitzel also said that he and his team would continue to remain confident in their stance. It is now up to the Supreme Court to decide whether they would like to consider the appeal or decline the CRA’s leave request. However, if the appeal goes on, we might need to wait for the second half of 2020 before reaching the final verdict. The CEO also takes a lot of pride in the fact that the company has been a very responsible corporate entity that has invested a considerable amount for the wellbeing and progress of Canadian citizens and indigenous people.
What if the appeal is rejected?
Simultaneously, the leave appeal is rejected, and the verdict is in favour of Cameco; Cameco will be entitled to a $5.5 million (plus interest) as a refund. These will be in lieu of the company’s installments during the tax years of 2003, 2005, and 2006. Besides, Cameco will also be entitled to disbursements worth $17.9 million and legal fees worth $10.25 million.
On February 18th, 2021, the SCC declined to hear the appeal of the CRA.
Faber LLP is your number one source for all sorts of accounting-related concerns and assistance in Canada. We are an accounting-related firm in Edmonton that would be glad to take over your bookkeeping tasks. Get in touch.