Madison Pacific Properties Inc. announces Tax Court of Canada judgement on tax court case
January 04 2024 - 4:30PM
Madison Pacific Properties Inc. (the Company) (TSX: MPC and MPC.C),
a Vancouver-based real estate company announces judgement issued by
the Tax Court of Canada (“TCC”) on its tax court case.
As previously reported in the Company’s
Consolidated Financial Statements, the Company and certain
subsidiaries have received from the Canada Revenue Agency (“CRA”)
and Alberta Tax and Revenue Administration (“ATRA”) tax notices of
reassessment for various taxation years. The reassessments deny the
application and usage of certain non-capital losses, capital
losses, deductions and investment tax credits arising from prior
years. The Company and its subsidiaries have filed notices of
objection and notices of appeal to the reassessments with the CRA
and ATRA.
The appeal with the Tax Court of Canada (“TCC”)
for one of the reassessed companies, Madison Pacific Properties
Inc., was heard in March 2022 and in November 2023 (the “MPP
Appeal”). The TCC released its judgement on the MPP Appeal on
December 27, 2023 in favour of the CRA, confirming the CRA’s and
ATRA’s reassessments. The decision denied Madison Pacific
Properties Inc.’s ability to use certain carryforward losses for
certain taxation years within its 2009 to 2017 taxation years.
Additional taxes payable for the reassessed years plus estimated
interest and awarded legal costs totals approximately $6.2 million
for the MPP Appeal. The Company had previously made deposits of
$2.3 million related to the MPP Appeal with the balance owing now
payable.
The Company and its counsel are currently
assessing whether to appeal the decision issued by the TCC. In
addition, the Company and its counsel are also assessing the impact
that this decision may have on its subsidiaries’ tax appeals. The
Company is also assessing the impact the decision may have on any
financial statement adjustments.
For a review of the risks and uncertainties to
which the Company is subject, see its most recently filed annual
and interim MD&A.
For more information please contact:
Contact: |
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Mr. John DeLucchiPresident & CEO |
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Ms. Bernice Yip Chief Financial Officer |
Telephone: |
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(604) 732-6540 |
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(604) 732-6540 |
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Address: |
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389 West 6th Avenue Vancouver, B.C. V5Y 1L1 |
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