1H 2013 Earnings Presentation
Tax
Significant assessments received from Canada Revenue Agency (CRA) related to:
•
Transfer pricing for goods produced in Canada
•
Royalties paid to US affiliate for company intellectual property
•
Management fees paid to US affiliate for services provided to Canada
Audit Period
2005-2006
2007-2009
Assessed
Company Action
C$69M
Appealing since assessment is
disproportionate to global
income for period
Impact
Security of ~50% of assessment
(~C$37M) posted to appeal
assessment
Audits nearing completion and assessments expected by end of 2013
•
Assessments includes taxes, penalties and interest
•
"Competent authority" process expected to require 2+ years
•
Settlement among taxing jurisdictions
Protects against double taxation
Security is considered debt under bank agreement and may impact liquidity.
BOART LONGYEAR
1H 2013 Earnings Presentation
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