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Supreme Court of Canada dismisses tax appeal of Deans Knight Income Corporation
VANCOUVER, BC, May 26, 2023 /CNW/ - Today, the Supreme Court of Canada (the "SCC") issued its decision dismissing Deans Knight Income Corporation's (the "Company") appeal of the Company's tax matter. The SCC upheld the Canada Revenue Agency's application of the general anti-avoidance rule in the Income Tax Act (Canada) to deny the Company from deducting its tax attributes in its 2009 – 2012 taxation years.
In 2014 the Company prepaid its tax liability of approximately $21.6 million, order to limit additional interest and penalties from accruing. That deposit will now be forfeited to the CRA, and costs will be payable to the Government of Canada.
The Company intends to immediately proceed to take the requisite steps to wind up the business and affairs of the Company.
This news release contains certain forward-looking statements that the Company believes allow readers to better understand the Company's future plans. These forward-looking statements include, without limitation, the intention of the Company to commence the process of winding up its business and affairs, which will include a final distribution to shareholders, once all administrative matters in respect of the decision are complete, and a refund of the amount on deposit with the Canada Revenue Agency is received. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the risks relating to the Company successfully winding up its business and affairs in a timely fashion.
With respect to forward-looking statements contained in this news release, the Company has made various assumptions, including relating to the ability of the Company to wind up its business and affairs in a timely fashion. You are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company's actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information contained in this document is expressly qualified by this cautionary statement. Except as required by law, the Company does not undertake to update any forward-looking statements.
SOURCE Deans Knight Income Corporation