Exchange Income (TSX:EIF, Stock Forum), a Winnipeg Manitoba-based firm engaged in acquiring opportunities in the industrial and aviation sectors, announced today that the company had received formal notice from the Canada Revenue Agency (“CRA”) that it intends to reassess the company's 2009 conversion from income trust to corporation.
According to the news release, “The CRA has indicated in its proposal letter that it intends to challenge the ability to carry forward certain losses on the basis of acquisition of control and general anti-avoidance rules of the Income Tax Act (Canada).”
The release went on to note, “The Corporation remains confident in the appropriateness of its tax filing position and the expected tax consequences of the conversion, and intends to vigorously defend such position.”
And then it finally concluded, “The Corporation has more than adequate capital resources to fund the Tax Deposit and ultimately the entire balance if required. This proposed reassessment does not impact the Corporation's long-term business strategy in any manner.”