Franco-Nevada Reaches Settlement on Canadian Tax Disputes
Franco-Nevada (NYSE:FNV) has successfully resolved its tax dispute with the Canada Revenue Agency (CRA) regarding reassessments of the 2013-2019 taxation years. The settlement involves the Company's subsidiaries Franco-Nevada Barbados and Franco-Nevada Mexico.
Key terms include: no tax payment required on foreign earnings for 2013-2019, an increase in service fee markup from 7-20% to 30%, and additional income of C$1.4 million subject to Canadian tax. The company expects no additional cash taxes due to non-capital losses. The settlement principles are expected to apply beyond 2019, barring material changes.
Over the past 18 months, Franco-Nevada has completed approximately $3 billion in transactions, demonstrating its continued focus on portfolio expansion.
Franco-Nevada (NYSE:FNV) ha risolto con successo la sua controversia fiscale con l'Agenzia delle Entrate canadese (CRA) riguardo alle reassessments degli anni fiscali 2013-2019. L'accordo coinvolge le controllate della società Franco-Nevada Barbados e Franco-Nevada Messico.
I termini chiave includono: nessun pagamento d'imposta richiesto sui redditi esteri per 2013-2019, un aumento del margine sulle tariffe di servizio dal 7-20% al 30%, e un reddito aggiuntivo di C$1.4 milioni soggetto a tassazione canadese. L'azienda si aspetta nessuna imposta in contanti aggiuntiva dovuta a perdite non capitali. I principi dell'accordo dovrebbero applicarsi anche oltre il 2019, salvo cambiamenti rilevanti.
Negli ultimi 18 mesi, Franco-Nevada ha concluso transazioni per circa 3 miliardi di dollari, dimostrando il suo continuo focus sull'espansione del portafoglio.
Franco-Nevada (NYSE:FNV) ha resuelto con éxito su disputa fiscal con la Agencia de Ingresos de Canadá (CRA) con respecto a las reevaluaciones de los años fiscales 2013-2019. El acuerdo involucra a las filiales Franco-Nevada Barbados y Franco-Nevada México.
Los términos clave incluyen: no se requiere pago de impuestos sobre ingresos en el extranjero para 2013-2019, un aumento en el margen de las tarifas de servicio del 7-20% al 30%, y un ingreso adicional de C$1.4 millones sujeto a impuestos canadienses. La empresa espera no pagar impuestos en efectivo adicionales debido a pérdidas no capitales. Se espera que los principios del acuerdo se apliquen más allá de 2019, salvo cambios materiales.
En los últimos 18 meses, Franco-Nevada ha realizado transacciones por aproximadamente $3 mil millones, demostrando su continuo enfoque en la expansión de su cartera.
Franco-Nevada (NYSE:FNV)가 캐나다 국세청(CRA)과 2013-2019 과세 연도에 대한 재평가와 관련된 세무 분쟁을 성공적으로 해결했습니다. 이 합의는 회사의 자회사 Franco-Nevada Barbados 및 Franco-Nevada Mexico를 포함합니다.
주요 조항으로는 2013-2019년 외국 소득에 대한 세금 납부 의무 없음, 서비스 수수료 마크업을 7-20%에서 30%로 인상, 그리고 캐나다세가 적용되는 추가 소득 0.14백만 캐나다 달러가 있습니다. 회사는 비자본손실로 인해 추가 현금세를 납부하지 않을 것으로 기대합니다. 합의 원칙은 중대한 변화가 없는 한 2019년 이후에도 적용될 것으로 예상됩니다.
지난 18개월 동안 Franco-Nevada는 약 30억 달러 규모의 거래를 완료해 포트폴리오 확장에 지속적으로 집중하고 있음을 보여주었습니다.
Franco-Nevada (NYSE:FNV) a résolu avec succès son litige fiscal avec l'Agence du revenu du Canada (CRA) concernant les réassessments des années d'imposition 2013-2019. L'accord concerne les filiales de la société Franco-Nevada Barbados et Franco-Nevada Mexico.
Principaux termes: aucun paiement d'impôt requis sur les gains à l'étranger pour 2013-2019, une augmentation de la marge sur les frais de service de 7-20% à 30%, et des revenus supplémentaires de 1,4 million de dollars canadiens soumis à l'impôt canadien. La société s'attend à ne pas payer d'impôts en espèces supplémentaires en raison de pertes non capitalisées. Les principes de l'accord devraient s'appliquer au-delà de 2019, sauf changement important.
Au cours des 18 derniers mois, Franco-Nevada a réalisé environ 3 milliards de dollars de transactions, démontrant son attention continue à l'expansion du portefeuille.
Franco-Nevada (NYSE:FNV) hat erfolgreich seine Steuerschlichtung mit der Canada Revenue Agency (CRA) bezüglich der Neuberechnungen der Steuerjahre 2013-2019 gelöst. Die Vereinbarung betrifft die Tochtergesellschaften Franco-Nevada Barbados und Franco-Nevada Mexico.
Wichtige Konditionen: keine Steuerzahlung erforderlich auf ausländische Gewinne für 2013-2019, eine Erhöhung der Servicegebühr-Aufschlags von 7-20% auf 30%, und zusätzliches Einkommen von C$1,4 Millionen unterliegt kanadischer Besteuerung. Das Unternehmen erwartet aufgrund von Nicht-Kapitalverlusten keine zusätzlichen Cash-Steuern. Die Prinzipien der Einigung werden voraussichtlich über 2019 hinaus gelten, sofern es keine wesentlichen Änderungen gibt.
In den letzten 18 Monaten hat Franco-Nevada Transaktionen im Wert von ca. 3 Milliarden abgeschlossen, was den fortgesetzten Fokus auf Portfoliowachstum zeigt.
Franco-Nevada (NYSE:FNV) نجحت في حل نزاعها الضريبي مع هيئة الإيرادات الكندية (CRA) بخصوص التقييمات المعاد النظر فيها للسنوات الضريبية 2013-2019. تشمل التسوية الشركات التابعة Franco-Nevada Barbados وFranco-Nevada Mexico.
تشمل الشروط الأساسية: لا يوجد مطلوب دفع ضريبة على الأرباح الأجنبية للفترة 2013-2019، زيادة هامش رسوم الخدمات من 7-20% إلى 30%, ودخل إضافي قدره 1.4 مليون دولار كندي يخضع للضريبة الكندية. تتوقع الشركة عدم وجود ضرائب نقدية إضافية بسبب الخسائر غير الرأسمالية. من المتوقع أن تسري مبادئ التسوية إلى ما بعد 2019 ما لم يحدث تغيير مادي. خلال الـ18 شهراً الماضية، أكملت Franco-Nevada معاملات بقيمة تقارب 3 مليارات دولار، مما يبرز تركيزها المستمر على توسيع المحفظة.
Franco-Nevada (NYSE:FNV) 已成功解决与加拿大税务局（CRA）关于2013-2019纳税年度的重新评估的税务争议。该和解涉及公司子公司 Franco-Nevada Barbados 和 Franco-Nevada Mexico。
主要条款包括：2013-2019年对海外收益不征税、服务费加成从7-20%提高至30%、以及额外收入<1.4百万加元需缴加拿大税。公司预计由于非资本亏损，不会产生额外现金税。和解原则预计在2019年之后仍将适用，除非发生重大变动。在过去的18个月内，Franco-Nevada完成了约30亿美元的交易，显示其持续专注于投资组合扩张。
- No tax payment required on foreign earnings for 2013-2019 period
- Transfer pricing penalties will be reversed and interest charges reduced
- Settlement provides greater investment certainty for global growth
- $3 billion in transactions completed over last 18 months showing strong growth
- Service fee markup increased significantly from 7-20% to 30%
- Settlement is not legally binding for years after 2019
Insights
Franco-Nevada resolves CRA tax dispute favorably with no tax on foreign earnings and minimal impact on past financials.
The settlement reached by Franco-Nevada with the Canada Revenue Agency represents a significant positive development for the company. The resolution of this transfer pricing dispute spanning taxation years 2013-2019 effectively eliminates what could have been a substantial tax liability. Most importantly, the settlement establishes that no tax will be required on the foreign earnings of Franco-Nevada's subsidiaries in Barbados and Mexico for the period in question.
The financial impact is minimal - only C$1.4 million in additional Canadian taxable income for the seven-year period, which will be fully offset by existing non-capital losses, resulting in zero additional cash taxes. Furthermore, all transfer pricing penalties have been reversed, and interest charges will be reduced.
While the settlement isn't legally binding beyond 2019, the established transfer pricing principles should provide a predictable framework for future tax treatment, assuming no material changes to facts or law. This gives Franco-Nevada much-needed tax certainty for international operations, critical for a company with a global royalty and streaming portfolio.
The timing is particularly favorable as Franco-Nevada has deployed approximately
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Settlement Highlights
- The settlement will not require the payment of any tax in
Canada on the foreign earnings of Franco-Nevada Barbados and Franco-Nevada Mexico for the 2013 to 2019 taxation years. - The service fee charged by Franco-Nevada for certain services provided to Franco-Nevada Barbados and Franco-Nevada Mexico will be adjusted to increase the mark-up applied to Franco-Nevada's cost of providing those services from the current range of 7
-20% to30% . - This additional service fee will result in Franco-Nevada being subjected to Canadian tax on additional income of
C in$1.4 million Canada for the 2013 to 2019 taxation years. After the application of non-capital losses, Franco-Nevada does not anticipate any additional cash taxes will arise in respect of these years as a result of the settlement. - Transfer pricing penalties reflected in the Reassessments will be reversed. The interest charges reflected in the Reassessments will be reduced and adjusted consequentially to the adjustments described above.
- The settlement is not legally binding on the CRA for years after 2019, however, we believe the transfer pricing principles established by the settlement will apply to years after 2019, provided there are no material changes to the facts or law.
"We are pleased to reach this settlement with the CRA and believe it is a great outcome for Franco-Nevada and its shareholders," said Paul Brink, President & CEO of Franco-Nevada. "This settlement provides greater investment certainty for our global growth ambitions and puts the tax dispute behind us. We can now continue to focus on adding high-quality, long-life assets to our diverse portfolio as we have done over the last 18 months with approximately
Advisors and Counsel
Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the
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SOURCE Franco-Nevada Corporation
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