Baytex Energy Corp T.BTE

RBC

[retiredcf]

November 13, 2023

Baytex Energy Corp.
Receives Notice of Confirmation for Tax Reassessment

TSX: BTE | CAD 5.62 | Outperform | Price Target CAD 8.50

Sentiment: Neutral

Baytex Energy announced today that it has received a notice of confirmation from the Canada Revenue Agency (CRA) that denies non-capital loss deductions relating to the calculation of income taxes from 2011-14.

Noteworthy Factors

• As previously disclosed, Baytex received notices of reassessment in 2016 for the accumulation of non-capital losses used to reduce its taxable income. In September 2016, Baytex filed notices of objection with the CRA appealing each reassessment received.

• Recent reassessments issued by the CRA assert taxes owing of $244.8 million, late payment interest of $166.6 million and a late filing penalty (with respect to the 2011 tax year) of $4.1 million.

• Baytex is not required to pay any amount relating to the reassessed amounts owing in order to litigate the appeals in court.

• Baytex remains confident that its tax filings are correct and will be filing appeals to the Tax Court of Canada. The appeals and could take up to three years to be resolved, and an additional two years or potentially longer should further appeals be made by Baytex or the CRA.

[Antonyius]

Of course the feds are coming to grab some money since they've overspent. Honestly not good news for BTE but realistically I think they'll fight it in the courts and then work out some deal with the CRA where they pay a fraction of the "money owed" to appease the CRA. Basically just the legal mafia at work. 

[dandu1924]

I am  concern about their CRA  stuffs,   BTE  did know that before and they did kept  this  secret  and now this is the news. So how many stuffs like  that will come in the future, I mean always something negative for the BTE shareholders. This is the new strategy of BTE,  making  so much negative stuff to push down  the share price 

[Antonyius]

I'm not sure I understand your concern. The tax issue is from like 10 years ago, before current management were even remotely involved. It's not part of any strategy. It's just the CRA trying to get some extra money. 

[dandu1924]

So, the market did not like this, we are down 2%. 

[1234bmth]

Today's drop is partially due to this news and partially due to US inflation data that will be released tomorrow morning, most people don't keep high risk and high volatile stocks before major economic data especially inflation.

[Cobalt]

Dont think so them numbers are prety much baked into the market most have a very good idea what is coming, and 1/2 the energy index was green led by MEG 2.66%

[red2000]

We all know that for a long time, like institutionals, lender, market analysts and more ! And many more O&G CDN producers are in the same boat ! https://www.baytexenergy.com/content/uploads/2022/09/CRA-Proposal-November-3-FINAL.pdf BAYTEX ANNOUNCES RECEIPT OF PROPOSAL LETTER FROM THE CANADA REVENUE AGENCY CALGARY, ALBERTA (November 4, 2014) – Baytex Energy Corp. (“Baytex”) (TSX, NYSE: BTE

[Wildfury]

Greetings Red, 2010-2013 seems like a time period that the CRA has no jurisdiction over Baytex, why now in 2023? As an individual, we have 6 years I believe that the CRA can do a reassessment. It just sounds a bit overdone, will the management involved in that time period be held responsible? This has been released purposely to drive Baytex shares downward. This is a CRA matter and should have

[riski]

This is a non issue. It's surprising how worried people get over thr slightest BTE news item.  I owned this in 2016 and reviewed the tax news at the time with a lawyer friend. And I talked to him again last year about it, and he believes that there are precedent cases that have already been resolved without the companies paying any of the alleged due tax. According to him, worst case

[1234bmth]

they may had already released this issue in the past years and they are not obliged to mention it in every earnings report unless there's a new update to the matter, therefore they didn't mention it until they got a notice from CRA which is considered a new update, so they just released the news, there is nothing such as buying back shares cheap, if they release the news by purpose of

[Quietinvestor]

1234, you are indeed correct. It is a "material change" and as such, must be made public as oultined in the TSX and NYSE regulatory frameworks. BTE had no choice.  DYODD 

[red2000]

Right ! And as I said, many other CDN O&G producers are in the same mess ! Polievre will right off all that quickly !