Loblaws squares off with CRA in $400M tax fight
Source: CBC News
Author: Zach Dubinsky
Already taking flak over its admissions of bread price-fixing and over the theft of its customer loyalty points, Loblaws entered another battlefield Monday morning in a Toronto courtroom.
The grocery giant began a month-long trial against the federal government over the Canada Revenue Agency’s claims that it set up a bogus offshore bank in the Caribbean to avoid tax on hundreds of millions of dollars in investment income over the last two decades.
At stake for Loblaws and controlling shareholder George Weston Ltd. is a potential $406-million assessment by the taxman — which the company is appealing — consisting of taxes on profits it booked in a Barbados subsidiary. The government has said the financial manoeuvre was designed to “circumvent” parts of the Income Tax Act.