The Tax Court of Canada issued a favorable order resolving a previously disclosed dispute between Suncor Energy and the Canada Revenue Agency (CRA). The dispute was in regards to the income tax treatment of realized losses in 2007 on the settlement of certain derivative contracts.
The Tax Court Order confirmed the successful resolution of this matter between Suncor and the CRA, resulting in no additional taxes, interest or penalties. Suncor’s original filing position on this issue is therefore maintained and all taxation matters related to this issue are now closed. Suncor had provided security to the CRA and the provinces of Quebec and Ontario for approximately $657 million in respect of this issue. The company is taking steps for the return of this security.