SASKATOON- Shares in Cameco Corp. shot higher in early trading after the company said the tax court has ruled in its favour in a dispute of reassessments issued by the Canada Revenue Agency.
Cameco shares were up $2.60 or about 20 per cent at $15.39 in early trading on the Toronto Stock Exchange.
The dispute focused on Cameco’s marketing and trading structure involving foreign subsidiaries and the related transfer-pricing methodology used for certain inter-company uranium sale and purchase agreements.
The uranium miner said the tax court has referred the matter back to the Minister of National Revenue in order to issue new reassessments for the years in accordance with the court’s decision.
The ruling covered the company’s 2003, 2005 and 2006 tax years.
However, while Cameco says the decision only relates to those three tax years, it believes nothing in the decision would warrant a different outcome for other tax years in question.
The CRA may appeal the decision to the Federal Court of Appeal.
Cameco says it will be making an application to the court to recover the costs incurred over the course of this case.