Madison Pacific Properties Inc. Announces Tax Court of Canada Judgment Regarding Tax Court Case

Article content

VANCOUVER, British Columbia, Jan. 04, 2024 (GLOBE NEWSWIRE) — Madison Pacific Properties Inc. (the Company) (TSX: MPC and MPC.C), a real estate company based in Vancouver, announces a judgment rendered by the Canadian Court of tax. (“TCC”) in connection with its case before the tax court.

As previously disclosed in the Company’s consolidated financial statements, the Company and certain subsidiaries have received notices of new information from the Canada Revenue Agency (« CRA ») and the Alberta Tax and Revenue Administration (« ATRA »). contribution for various tax years. The reassessments disallow the application and use of certain non-capital losses, capital losses, deductions and investment tax credits arising from prior years. The Company and its subsidiaries have filed notices of objection and notices of appeal for reassessments with the CRA and ATRA.

Article content

The appeal before the Tax Court of Canada (“TCC”) for one of the reassessed companies, Madison Pacific Properties Inc., was heard in March 2022 and November 2023 (the “MPP Appeal”). The CCI rendered its judgment on the MP’s appeal on December 27, 2023 in favor of the ARC, confirming the reassessments of the ARC and ATRA. The ruling denied Madison Pacific Properties Inc. the ability to use certain loss carryforwards for certain tax years during its 2009 through 2017 tax years. The additional taxes payable for the reassessment years, plus estimated interest and legal fees awarded, total approximately $6.2 million for the MP’s appeal. The Society had already made deposits of $2.3 million related to the MP’s appeal and the balance due is now payable.

The Company and its lawyers are currently evaluating whether to appeal the decision rendered by the ICC. In addition, the Company and its lawyers are also evaluating the impact that this decision could have on the tax remedies of its subsidiaries. The Company is also evaluating the impact this decision could have on any adjustment to the financial statements.

For a discussion of the risks and uncertainties to which the Company is subject, see its most recently filed annual and interim management report.

For more information please contact:

Share this article on your social network