ROUGEMONT, QC, June 16 /CNW Telbec/ - Lassonde Industries Inc.
(LAS.A - TSX) announces that it has reached an agreement with the Canada
Revenue Agency, the Ministry of Revenue of Ontario, and Revenu Québec to
resolve matters arising from the notices of assessment issued following the
Quebec government's enactment of Bill 15 in June 2006, which amended the
Taxation Act with retroactive effect.
Upon the enactment of Bill 15, the Company recorded an unusual current
income tax expense of $3,730,000 and a non-recurring and non-deductible
interest expense of $343,000 in its financial statements for the second
quarter of 2006. The Company also made provisions for the related interest in
each subsequent quarter. An amount of $332,000 related to the unusual income
tax expense was paid in 2007.
The agreement provides for the payment of $2,143,000 in current income
taxes plus the related interest computed from April 1, 2008 to the present
date. These amounts will be payable within 14 days following the receipt of
the new notices of assessment that give effect to the agreement.
The Company's financial statements dated March 29, 2008, included a
provision for income taxes payable associated with Bill 15 in the amount of
$3,398,000 and a provision of $1,046,000 for the related interest. The Company
therefore expects to record, in the second quarter of 2008, a $1,255,000
decrease in the current income tax expense and an estimated net decrease of
$1,013,000 in financial expenses, resulting in a net earnings increase of
$2,268,000, or $0.34 per share. This amount represents the difference between
the amounts claimed under the agreement and the balances of the provisions for
financial expenses and income taxes payable, associated with Bill 15, recorded
in the Company's balance sheet.
About Lassonde Industries Inc.
Lassonde Industries Inc. is a Canadian leader in the development,
manufacturing, and marketing of a wide range of fruit and vegetable juices and
drinks, and fondue bouillons and sauces. The Company also produces and markets
certain specialty food products such as canned corn-on-the-cob, meat
marinades, barbecue sauces, brunch beans, pasta sauces, tapenades and
bruschetta topping. Finally, the Company packages and markets imported wines
from various countries. Nearly 1,200 employees contribute to the Company's
growth and to offering customers quality products.
For further information:
For further information: Guy Blanchette, Vice President, Finance,
Lassonde Industries Inc., (450) 469-4926, extension 782