Silver Wheaton Receives CRA Proposal Letter Regarding Tax Increase

(RTTNews) - Pure precious metals streaming company Silver Wheaton Corp. (SLW.TO, SLW) Tuesday said it has received a proposal letter dated July 6, from the Canada Revenue Agency or CRA proposing to reassess Silver Wheaton under various rules contained in the Income Tax Act (Canada).

The proposal outlines CRA's position that the transfer pricing provisions of the Income Tax Act (Canada) relating to income earned by the firm's foreign subsidiaries outside of Canada should apply, such that the income of Silver Wheaton subject to tax in Canada should be increased for the 2005 to 2010 taxation years by C$715 million (US$567 million).

The issuance of the proposal does not require the company to pay any amount to the CRA at this time.

Silver Wheaton said its management believes that the company has filed its tax returns and paid applicable taxes in compliance with Canadian tax law. Silver Wheaton intends to vigorously defend its tax filing positions and is now preparing its response to the proposal.