SMM12, 17 March -: Wheaton Precious Metals shares soared more than 14 per cent on Friday after the company announced a settlement with Canada's tax authority, (CRA). The settlement finally settled a tax complaint that had been reassessed by Wheaton2005's transfer pricing rules from 2000 to 2010. Wheaton Precious Metals is one of the world's largest precious metal streaming companies, with streaming protocols for 19 mines and nine development phase projects. The reassessment is related to income generated by wholly owned foreign subsidiaries of Wheaton operating outside Canada. The Wheaton press release said the settlement stressed that foreign income generated by Wheaton International is not taxed in Canada. (the application of settlement in the years after 2010, including the 2011-2015 tax year currently under audit, is limited to transfer pricing and will not change significantly as a result of changes in facts or laws or precedents. )
Additional service charges will lead to an increase in income generated by Wheaton in Canada and will be subject to Canadian taxes. The transfer pricing penalty under reassessment will be revoked. The interest will be adjusted in accordance with the above adjustments. After applying non-capital losses, Wheaton said that as a result of the settlement, no additional cash taxes were expected for the 2005-2010 tax year.
Randy Smallwood, president and chief executive officer of Wheaton, said, "the terms of the settlement are a good outcome for the company and its shareholders. This settlement addresses the uncertainty about our future use of our business model and puts tax issues behind us.
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