1H 2013 Earnings Presentation slide image

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 16
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