RE:RE:CRA decision?Testimony closed May 2016 and now they are just waiting on the court. Things move very slowly in the judicial system though, and this is probably a particularly thorny case as it may set a precedent, not only in Canada but elsewhere.
The company's position is that "income earned outside of Canada by foreign subsidiaries relating to mines located outside of Canada should not be subject to Canadian tax."
Correct me if I'm mistaken, but haven't the mining companies SLW has streams with already paid taxes to local jurisdictions on the profit on the silver the mines produced? If so, taxing it again in Canada would presumably amount to double taxation. (Never mind all the taxes garnished on all the costs incurred in mining it, the oil purchased, wages, etc.)
I believe SLW probably has the correct position on this matter, but that doesn't necessarily mean it will prevail. Laws can be interpreted different ways (and rewritten if necessary, sometimes retroactively) and governments all over the world are looking for any way they can to increase tax revenues in the face of their massive debt and deficit spending. (Why did it take over a decade for the tax court to suddenly realize: Hey, we might have a cash cow ripe for the picking here?)
As for the share price, I think most of the risk is already priced in, and although the shares may drop on a negative decision by the court, I expect buyers will step up quickly. Presumably SLW also has recourse to years of appeals and further litigation, but I'm sure management would like to put this issue behind them as much as us shareholders would!