Continental Bank of Canada - Announcement.TORONTO--(BUSINESS WIRE)--June 26, 1996--CONTINENTAL BANK (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic ) -- Continental Bank of Canada The Continental Bank of Canada was a chartered bank formed in Canada when IAC, a financing company, decided to expand the scope of operations in the 1980s. This small bank struggled for several years before being acquired by Lloyds Bank of the United Kingdom. announced today that its advisors have explored in greater detail the Bank's income tax position consequent con·se·quent adj. 1. a. Following as a natural effect, result, or conclusion: tried to prevent an oil spill and the consequent damage to wildlife. b. upon the recent decision of the Federal Court of Appeal. The analysis is extremely complicated, since it must take into account matters such as the previously-announced settlement in 1994 with Revenue Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of of certain income tax issues, and the interaction between federal and provincial taxation authorities. The Bank believes that it will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to some payment out of the amounts currently held on deposit by revenue authorities even if the decision of the Federal Court of Appeal is left unchanged. This amount could be in the range of $5 million, which is not currently reflected in the balance sheet of the Bank. As previously announced, the Bank has instructed legal counsel to seek a motion for a further hearing before the Federal Court of Appeal. The Bank's position is that, even if the 1986 transaction is to be taxed as a sale of assets rather than the sale of a partnership interest, the assets were sold by the Bank rather than by its leasing subsidiary and the recaptured capital cost allowance should be taxed in the hands of the Bank, if at all. The issue was not addressed in the reasons for judgement of the Federal Court of Appeal, although it had been argued. If the Federal Court of Appeal, after a further hearing, supports the position of the Bank, we would be able to use non-capital losses that would otherwise expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. to reduce the amount of the taxes payable as well as deferring the timing of the tax liability with a consequent savings in interest owing by the Bank on taxes payable. It is not feasible to estimate precisely what benefit would be realized by the Bank if this motion is successful, but the amount recoverable from the deposits with revenue authorities would be increased to at least $16 million (including the $5 million referred to above), or in excess of $1.20 per share and perhaps more. The Bank has been advised that the requested hearing before the Federal Court of Appeal will not occur before September at the earliest. Further announcements will be made as appropriate. CONTACT: Continental Bank of Canada George Begic, 416/864-1019 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion