THINGS WILL HAVE TO SHAKE OR SHAPE UP WITH "GVC"I have written to sollicitors (both Appellant for Glacier Media Inc. and Respondent for Justice Canada, on behalf of the CRA (Canada Revenue Agency). At $0.30*/share is the game over?
January 14, 2023
David R. Davies, Natasha Kisilevsky, Tyler Berg
SOLLICITORS for the Appellant
Yanick Houle, Perry Derksen, Dominic Bdard-Lapointe, ric Brown
SOLLICITORS for the Respondent
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GLACIER MEDIA INC. was incorporated under the British Columbia Company Act on March 23, 1988 under the name “Cambridge Resources Ltd.”. The Company subsequently changed its name to “Glacier Ventures International Corp.” on August 26, 1997 and to “Glacier Media Inc.” on July 1, 2008. Effective on September 20, 1999, the Company continued under the Canada Business Corporations Act (“CBCA”). The Company’s business office is located at 2188 Yukon Street, Vancouver, British Columbia, V5Y 3P1 and its registered office is located at Suite 2500 - 700 West Georgia Street, Vancouver, British Columbia, V7Y 1B3.
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Excerpt from GLACIER MEDIA INC. Annual Information Form - March 25, 2022 (Page 21)
Taxation
During 2014-2018 an affiliate of the Company (“the affiliate”) received, from the Canada Revenue Agency (“CRA”) and provincial tax authorities, tax notices of reassessments and assessments relating to the taxation years 2008-2017. The notices deny the application of non-capital losses, capital losses, scientific research and experimental development (“SR&ED”) pool deductions and SR&ED tax credits claimed. As a result additional taxes payable including interest and penalties are assessed at approximately $60.9 million.
The affiliate has filed notices of objection with the CRA and provincial taxing authorities. In connection with filing the notices of objection, the affiliate is required to make a 50% deposit of the amounts claimed by the CRA and provincial authorities as assessed. The affiliate has paid substantially all of the required deposit of $23.5 million. No further amounts are due at this time for the 2008-2017 taxation years as the appeal process continues. These payments have been recorded as Other assets, within non-current assets, as the Company and its affiliate expect to ultimately be successful in its objection.
The Company, the affiliate and its counsel believe that the filing positions adopted by the affiliate in all years are appropriate and in accordance with the law. The affiliate intends to vigorously defend such positions.
If the affiliate is successful in defending its positions, the deposits made plus applicable interest will be refunded to the affiliate. There is no assurance that the affiliate’s objections and appeals will be successful. If the CRA and provincial tax authorities are successful, the affiliate will be required to pay the remaining balance of taxes owing plus applicable interest, and will be required to write-off any remaining tax assets relating to reassessed amounts.
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The Affiliate, GVIC COMMUNICATIONS CORP.'s B and C shares were delisted from the Toronto Stock Exchange at the close of business on April 6, 2021, since the said Affiliate became no longer a Reporting Issuer, pursuant to a Plan of Arrangement between Glacier Media Inc. (TSX: GVC) ("Glacier") and GVIC Communications Corp. (TSX: GCT) ("GVIC") completed on March 31, 2021.
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Appeal details for : 2018-559(IT)G
Act : Income Tax
Language : English
Date : 2018-02-14
Hearing Location : Vancouver
Procedure : General
Nature : General Anti Avoidance Rule - GAAR
Disposition : Interim Motion Granted Prior to Hearing
Status : Case management in progress
Party Information:
| Party | Name | Representative Type | Representative Information |
| Appellant or Applicant | GVIC Communications Corp. | Lawyer | Thorsteinssons LLP
David R. Davies
Natasha Kisilevsky
Tyler Berg |
| Respondent | Her Majesty the Queen | Lawyer | Yanick Houle
Perry Derksen
Dominic Bdard-Lapointe
Eric Brown |
Related Appeals:
| Appeal Number | Appellant Name |
| 2018-1568(IT)G | GVIC Communications Corp. |
Docket : 2018-559(IT)G
| Date | Action |
| 2018-02-14 | Notice of Appeal |
| 2018-02-15 | Filing fee paid |
| 2018-02-15 | Tariff Receipt - Form |
| 2018-02-20 | Certificate of Service |
| 2018-03-19 | Consent for Reply extension |
| 2018-03-20 | Letter re: Name of Justice Representative |
| 2018-05-24 | Request for photocopies of pleadings and other |
| 2018-05-25 | E-mail delivery status |
| 2018-06-07 | Reply to Notice of Appeal |
| 2018-07-05 | Miscellaneous |
| 2018-07-05 | Amended Reply to Notice of Appeal |
| 2018-07-05 | Answer rec'd from Appellant |
| 2018-08-15 | Letter requesting timetable sent |
| 2018-09-14 | Application to extend time - Court directives |
| 2018-09-18 | Application to extend time - Court directives |
| 2018-09-21 | Request for photocopies of pleadings and other |
| 2018-10-26 | Timetable submitted |
| 2018-11-02 | Order - Timetable |
| 2018-11-05 | Order - Timetable sent |
| 2018-11-07 | Request for photocopies of pleadings and other |
| 2019-03-27 | Respondent's List of Documents |
| 2019-03-29 | Appellant's List of Documents |
| 2019-05-15 | Letter re: Name of Justice Representative |
| 2019-09-17 | Request to amend timetables |
| 2019-09-19 | Memo (Request/Motion to Amend Timetable Order) |
| 2019-09-20 | Order - Timetable |
| 2019-09-23 | Order - Timetable sent |
| 2020-01-16 | Returnable date for Notice of Motion confirmed |
| 2020-02-13 | Affidavit |
| 2020-02-13 | Motion rec'd from Respondent (with set down date) |
| 2020-02-13 | Affidavit of Service |
| 2020-02-18 | Motion Scheduled |
| 2020-02-28 | Letter re: Name of Justice Representative |
| 2020-03-04 | Miscellaneous |
| 2020-03-06 | Adj. prior to hearing - Sine die |
| 2020-07-23 | Conference Call letter sent |
| 2020-07-23 | Conference Call - memo |
| 2020-07-24 | Case Management Conference scheduled |
| 2020-08-24 | Conference Call - memo |
| 2020-08-25 | Case Management Conference Held |
| 2020-08-25 | Minutes of Hearing |
| 2020-08-26 | Interim Motion Granted Prior to Hearing |
| 2020-08-26 | Interim Order |
| 2020-08-26 | E-mail delivery status |
| 2020-08-27 | Interim Order sent |
| 2020-10-30 | Timetable submitted |
| 2020-11-06 | Memo (Request/Motion to Amend Timetable Order) |
| 2020-11-09 | Order - Timetable |
| 2020-11-09 | Order - Timetable sent |
| 2021-05-27 | Request to amend timetables |
| 2021-08-19 | Memo (Request/Motion to Amend Timetable Order) |
| 2021-08-27 | Order - Timetable |
| 2021-08-27 | E-mail delivery status |
| 2021-08-27 | Order - Timetable sent |
| 2021-10-22 | Request to amend timetables |
| 2021-10-22 | Miscellaneous |
| 2021-10-27 | Memo (Request/Motion to Amend Timetable Order) |
| 2021-11-09 | Order - Timetable |
| 2021-11-09 | E-mail delivery status |
| 2021-11-09 | Order - Timetable sent |
| 2022-02-11 | Status Report |
| 2022-03-07 | Position/Response from respondent |
| 2022-03-14 | Memo (Request/Motion to Amend Timetable Order) |
| 2022-03-25 | Order - Timetable |
| 2022-03-29 | Order - Timetable sent |
| 2022-04-20 | Request to amend timetables |
| 2022-05-31 | Phone memo |
| 2022-05-31 | Phone memo |
| 2022-08-08 | Position requested |
| 2022-08-08 | E-mail delivery status |
| 2022-08-15 | Request to amend timetables |
| 2022-08-31 | Position/Response from appellant |
| 2022-11-15 | Position requested |
| 2022-12-14 | Proof of Service |
| 2022-12-14 | Amended Notice of Appeal - Consent to file |
| 2022-12-14 | Amended Notice of Appeal |
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Comments
The Appellant has been notified by the Respondent in 2018 of unentitled so to speak "tax benefits" it has recorded for the years 2008 to 2017 inclusively.
Roughly 5 years down the road, in 2023, court hearings have not even yet started.
The Appellant's latest step, according to the Tax Court of Canada's above Docket displayed, refers to an Amended Notice of Appeal filed on December 14, 2022.
An "Amendment", in general terms, is a modification or a revision to a previous case status, aimed at reaching a compromise or a settlement, to bring a matter to resolution.
It stands obvious that the consent of the Appellant to have deposited $23.5 million in 2018 in order to ensure a proper handling of the said litigation, suggest that the Appellant knew from day 1 of having been notified by the Respondent that it was caught in a certain deadlock.
There is no whatsoever doubt that the Respondent proceeded to an indepth fiscal analysis of the Appellant's Income Tax Returns for that period of a decade before denying the said tax benefits to the Appellant.
If the Appellant had felt lawfully convinced it was entitled to these tax benefits, it would have no question asked from the very beginning, in 2018, for an immediate hearing before the Tax Court of Canada, rather than taking a long-haul agenda, by holding talks and other exchanges with the Respondent's counsels..
It would be most useful to know :
- In what year did the Respondent first discovered the Applicant's filing of Income Tax Returns taking advantage of the tax benefits?
- Did the Applicant filed its 2018 and subsequent Income Tax Returns by keeping taking advantage of the tax benefits it claimed for the years 2008 to 2017 or did it ceased to do so?
- Why did the Applicant has proceeded to a Plan of Arrangement with GVIC Comunications Corp. in 2021?
The sequence of events in this case leaves no doubt that the Appellant is, since now almost 5 years, challenged to a difficult outcome.
As a shareholder of Glacier Media Inc,. the parent-company of former GVIC Communications Corp., i am puzzled as to why this case is undergoing so lenghty and costly procedures rather than be heard directly by a Judge, who is the ultimate person to decide on its fate? It is totally abusive to procrastinate and it serves no purpose for both the Applicant and the Respondent to argue and debate between themselves in the absence of a judge.
The Appellant is being paid legal fees for its work, which fees are disbursed from the treasury of a public company, Glacier Media Inc., without being disclosed to its shareholders. Should the Appellant be unsuccessful, Glacier Media Inc. will nevertheless be required to foot the bill for an amount in the millions of dollars + interests, regarding the entire money it would be owing to the Canada Revenue Agency and it also appears provincial authorities.
In my view, the Respondent (on behalf of its client, the CRA), is denying the Applicant so-called "tax benefits" for the years 2008 to 2017 based on an article of the Income Tax Act, just alike a person who is charged with theft will be indicted as per x "article, clause or disposition" of the Criminal Code.
I would like to stress out that Glacier Media Inc. share price (trading symbol GVC - Toronto Stock Exchange "TSX") is a paltry $0.30.
I hope that one of you can provide me with a timeframe as to when to expect an official hearing before a Tax Court of Canada's judge.
You will find below my e-mail to National Revenue Minister raising serious questions about Glacier Media Inc. remaining a public company. This ill-governed company must become "privatized" without the shadow of a doubt.