Mining Weekly reported that the Canada Revenue Agency (CRA) has notified Silver Wheaton Corp. (TSX:SLW,NYSE:SLW) that it will be reassessing international transactions the company made during the 2011 to 2013 taxation years. The company may have to pay a further $310 million in tax for the period.
As quoted in the market news:
The TSX- and NYSE-listed company was already embroiled in an acrimonious standoff with the CRA over the agency’s reassessment of Silver Wheaton’s 2005 to 2010 taxation years, and collect taxes on income earned by Silver Wheaton’s offshore subsidiaries.
Silver Wheaton, which provided financing to miners in exchange for the right to buy a share of their future metal output, last year reported that according to the notices of reassessment, the CRA was looking to increase Silver Wheaton’s income subject to tax in Canada for the relevant tax years by about C$715-million, which would result in federal and provincial tax of C$201-million. The CRA was also seeking to impose transfer pricing penalties of about C$72-million and interest and other penalties of C$81-million for the period.
The total tax, interest and penalties sought by the CRA for the 2005 to 2010 taxation years amounted to C$353-million.
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