CALGARY – The Canada Revenue Agency is demanding $11.5 million in tax owing and interest from Total Energy Services Inc. (TSX:TOT), a ruling the Calgary-based company says it plans to contest.
The notices of reassessment from the CRA relate to the 2010 and 2011 tax years, following Total’s conversion from an income trust to a corporation in 2009.
The bill includes $9.6 million in alleged tax owing and $1.9 million in arrears interest.
The company must pay half of the balance pending the appeal process. The company said it plans to do so with cash on hand.
“After careful consideration, due diligence and consultation with legal and tax advisers at the time of the conversion and subsequent to receiving the CRA proposal letter in April of 2015, Total remains of the opinion that its tax filing position is correct and the company will vigorously defend such position,” the company said Wednesday.
“Total will also seek to recover from the CRA any and all costs and damages arising from the issuance of such reassessments to the fullest extent possible.”