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Excellent. If people are failing to pay their taxes, then CRA should nail them to the cross.

Completely agree ... then there are these fellows. Most of these type of things (particularly in the US) are settled with a very large cheque before they get to court and the shareholders never hear about it. I have no idea what Cameco was thinking letting this one run so long. The courts are rarely sympathetic to such shenanigans.

Usually the Expert Witness Corporate Tax Law writes his report and the company decides to write the cheque or go to court based on what is in that report. Since the IRS rarely prosecutes them unless they have a good case and the company needs certainty they prefer the cheque route.

This one does not look good for Cameco but all the ones I've seen were US and the burden of proof may be different.


Cameco and the CRA head to court over potential $2.2-billion tax dispute

Ian Bickis, The Canadian Press | October 3, 2016 3:51 PM ET


“The CRA has a much stronger case to make because they can say: ‘Look, there is a world market price for uranium and your price that you cooked up between your own subsidiary was an artificially low price,”‘ Howlett said.

Cameco set up the subsidiary in 1999 and established a 17-year deal selling uranium at approximately US$10 a pound, which is what it was roughly trading at around the time.

Fixed price

The price, however, shot up to over US$130 a pound by 2007 and trades at more than US$30 a pound today, while the Swiss subsidiary still pays the fixed price.

“No unrelated company would have made that kind of a deal,” Howlett said. “It was a convenient thing and it was primarily done to avoid taxes.”
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