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We all like to save on our taxes
Year Published: 1989Resource Type: Article Cx Number: CX3651 Abstract: The Bronfman family is arranging for two of its companies to shift $528 million worth of oil and gas assets, for reasons that may have more to do with tax sheltering than corporate restructuring. Norcen Energy Resources Ltd. will buy most of the energy assets of Westmin Resources Ltd. Both companies are owned by the Bronfman family. At the same time, Westmin will transfer tax writeoffs it has accumulated to Norcen. Westmin has at least $125 million in potential tax credits which it can't use because its reported income isn't high enough. Norcen will use the credits it acquires to 'shelter' some of its own earnings. Norcen's director of planning, George Kenda, said that "a critical aspect" of the deal is getting a favourable tax ruling on it from Ottawa. "If we do not get the tax ruling, it would set the deal back," said Kenda. Kenda said it was too early to tell whether the corporate reshuffling would lead to layoffs. Subject Headings |