Uranium miner Cameco said on Friday that the Canada Revenue Agency (CRA) had appealed the September 26 Tax Court ruling, which found in favour of the miner for the 2003, 2005 and 2006 tax years. This means that it will take at least another two years before the case reaches finality.
“We are disappointed that the CRA has taken this action after such a clear and decisive ruling from the Tax Court,” said Cameco president and CEO Tim Gitzel.
“We are pleased that the CRA did not appeal Justice Owen’s decision that sham does not apply,” Gitzel said. “We do not agree with their remaining grounds for appeal. We hope to have a reasoned discussion with the CRA to see if we can reach a resolution for all years based on the principles laid out in the ruling.”
Cameco estimates it would take about two years for the Federal Court of Appeal to hear and decide the matter.
Decisions of the Federal Court of Appeal may be appealed to the Supreme Court of Canada, but only if the Supreme Court agrees to hear the appeal. If an appeal to the Supreme Court is pursued, Cameco estimates that a further two years would be required to receive a decision.
Despite CRA’s appeal, Cameco will be making an application to the court to recover substantial costs incurred over the course of this case. The actual cost award will be at the discretion of the Tax Court.
The Tax Court decision and CRA appeal apply only to the 2003, 2005 and 2006 tax years, which were the subject of the original court case. The company expects any further actions regarding subsequent tax years that have been reassessed (2007 through 2012) will be suspended until the first three years are finally resolved.