CALGARY, Aug. 24, 2016 /CNW/ - (TSX: TBE) – Twin Butte Energy Ltd. ("Twin Butte" or the "Company") announces that it has received notices of reassessment (the "Reassessments") from the Canada Revenue Agency (the "CRA") in which the CRA has denied the deduction of certain non-capital losses and other tax attributes in computing the Company's income for taxation years ending in 2011 to 2016. In issuing the Reassessments, the CRA is seeking to increase the Company's income for Canadian tax purposes which would result in federal and provincial taxes and interest of approximately $5.9 million.
The Company intends to file notices of objection with the CRA, within the required 90 day period provided for under the Income Tax Act (Canada), and will be required to pay a deposit forthwith of approximately $2.97 million representing 50% of the reassessed taxes and interest, pending the appeal process. In the event that the Company is not successful in having the Reassessment overturned, the Company has the right to appeal to the Tax Court of Canada. Twin Butte, in consultation with its advisors, believes that the Company has filed its tax returns, and paid applicable taxes, in compliance with Canadian tax law, and the Company intends to vigorously and expeditiously defend its tax filing position.
Certain information set forth in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expects", "believes", "will" and similar expressions and statements relating to matters that are not historical facts, contain forward-looking statements, including but not limited to statements regarding: the intention of Twin Butte to object to the Reassessments; Twin Butte's assessment of the validity of the Reassessments; and Twin Butte's assessment of the possible affect of the Reassessments on Twin Butte. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twin Butte's control, including the ability of Twin Butte to fund the required deposit; and any action by Twin Butte's lenders as a result of the Reassessments. The foregoing list is not exhaustive. Additional information on these and other risks that could affect completion of the Arrangement are set forth in the information circular, which is available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Twin Butte could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Twin Butte will derive therefrom. Twin Butte disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
SOURCE Twin Butte Energy Ltd.
For further information: about Twin Butte, please contact: Twin Butte Energy Ltd., Rob Wollmann, President and Chief Executive Officer; R. Alan Steele, Vice President Finance, Chief Financial Officer and Corporate Secretary, Tel: (403) 215-2045, Website: www.twinbutteenergy.com