Canada’s biggest uranium producer, Cameco, is set to appear in court on Wednesday to dispute accusations of setting up a subsidiary in Zug, Switzerland for the purpose of avoiding taxes.
Canada Revenue Agency contends whether the Saskatoon-based corporation wanted to dodge its fiscal duties by signing a 17-year agreement in 1999 with its Swiss arm to sell uranium at the fixed price of about US$10 per pound.
The practice is seen as ‘unfair’ given that the price of uranium rose to over US$130 a pound by 2007 and, despite the fact it has been in a steep downward trend ever since, still trades at over US$20 a pound today.
According to the CBC, the CRA is looking to shift an estimated $7.4 billion in foreign earnings between 2003 and 2015 back to Canada.
The current case, which has been moving slowly through appeals and legal motions since 2009, is dealing specifically with tax years 2003, 2005 and 2006.
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