BOUCHERVILLE, QC, Jan. 25, 2013 /CNW Telbec/ - Colabor Group Inc. (TSX:
GCL) ("Colabor" or the "Company") announces that it has met today with representatives from the Canada
Revenue Agency ("CRA") and has received from the CRA a draft notice of reassessment
challenging the tax consequences of its conversion ("Conversion") from an income fund structure to a corporation in August 2009. The
CRA is arguing that the Conversion falls under general anti-avoidance
rule of the Income Tax Act (Canada) (the "Income Tax Act").
Colabor remains confident in the appropriateness of its tax filing
position and the expected tax consequences of the Conversion and as of
today intends to vigorously defend such position at the administrative
level and afterwards, if and when a final notice of reassessment is
received from the CRA. After the administrative process, if Colabor
receives a final notice of reassessment, in order to appeal it, Colabor
would be required to make a payment of 50% of the amount of such
"We remain highly confident with our tax position based on the analysis
performed before the transaction was completed and changes to the
Income Tax Act subsequent to Colabor completing its conversion from an
income fund to a corporation. Colabor remains focused on its action
plan to optimize operating efficiencies, promote and accelerate the
realization of synergies and realize acquisitions to complement to our
current activities" said Claude Gariépy, President and Chief Executive
Officer of Colabor.
Colabor is a wholesaler and distributor of food and non-food products
serving the retail (grocery stores, convenience stores, etc.) and
food-service (cafeterias, restaurants, hotels, restaurant chains, etc.)
Additional information can be found in the information documents filed
by the Colabor Group Inc. with securities regulators, at www.sedar.com.
SOURCE: COLABOR GROUP INC.
For further information:
FOR ADDITIONAL INFORMATION, PLEASE CONTACT THE FOLLOWING PERSONS:
Colabor Group Inc.
Mr. Claude Gariépy
President and Chief Executive Officer
(450) 449-4911, extension 265
Colabor Group Inc.
Mr. Michel Loignon, CPA, CA
Vice President and Chief Financial Officer
(450) 449-4911, extension 235