Wheaton Precious Metals Corp. reached a settlement with the Canada Revenue Agency for a final resolution of the company's tax appeal, for reassessment under transfer pricing rules from 2005 to 2010, related to income generated by the company's units outside of Canada, collectively known as Wheaton International.
Under the settlement, foreign income on earnings generated by Wheaton International will not be subject to tax in Canada.
However, the company will charge Wheaton International a service fee, resulting in increased income which will be subject to Canadian tax.
Additionally, the company said Dec. 13 that transfer pricing penalties in the reassessments will be reversed, and the transfer pricing principles will also apply to all taxation years after 2010, including the 2011 to 2015 taxation years which are currently under audit.
The company does not expect additional cash taxes to arise for the 2005 to 2010 taxation years.