goldhunter..........I got the details from KWG's Audited Annual Financial Statements
as posted on Sedar On April 29/2016. sSame info can be found in MD&A for the same
period on Sedar.
22 COMMITMENTS AND CONTINGENCIES
(i) The Company has incurred approximately $13 million of expenditures which have been
passed through to shareholders as eligible expenditures for their purposes under flowthrough
agreements. As noted in Note 3 to these consolidated financial statements, there is
a risk that some or all of these claims may be disallowed. To the extent that the costs are
disallowed as deductions to shareholders, additional tax attributes would be created for the
Company which would be considered for recognition at that time. Additional costs may be
incurred. The Company has indemnified the subscribers of current and previous flowthrough
share offerings against any tax related amounts that become payable by the
shareholder as a result of the Company not meeting its expenditure commitments.
The Canada Revenue Agency (“CRA”) recently conducted an audit of the Company’s flowthrough
expenditures for the calendar years 2010 through 2013. As a result of the audit,
CRA has proposed an adjustment to the amount of qualifying expenditures that were
renounced to the subscribers aggregating approximately $6,700,000. In addition, CRA has
assessed additional Part XII.6 tax of approximately $1,103,180, including penalties and
interest. The Company has made a provision for the entire amount of the estimated Part
XII.6 tax, penalties and interest. Additionally, a provision in the amount of $3,837,217 has
been set up for the estimated subscriber indemnification costs based on the highest
personal income tax rates in the Province of Ontario at the time these expenditures were
renounced to the subscribers plus the Federal and Ontario investment tax credits available
at the time. The Company has reviewed CRA’s proposals and it disagrees with certain
positions taken by CRA. The Company intends to file formal objections to dispute the
assessments once they are issued.
Certain tax-related conditions may exist at the date the financial statements are issued
which may result in a loss to the Company but which will only be resolved when one or
more future events occur or fail to occur. The Company does not record any liability for
such future events until such time as the events are probable and reasonably determinable.
Sorry for the format.
And yes Edgy is right this info does not belong here. I'll refrain from from it.
GLTA,
Fossil
