Suncor Energy avoids $1.3 billion Revenue Canada tax bill after favourable Tax Court ruling

Photo by Jeff McIntosh/The Canadian Press

CALGARY — Suncor Energy says it has successfully defended its accounting practices and avoided a $1.3-billion tax bill sought by the Canada Revenue Agency.

The Calgary-based company said Monday that the Tax Court of Canada had ruled in its favour on a tax dispute stemming from how it accounted for losses in 2007.

The CRA had told the company in 2013 that it could be on the hook for the extra taxes because of how hedging losses from the Buzzard offshore field were handled in 2007, when the asset belonged to Petro-Canada.

Suncor said the Tax Court ruling means it won’t have to pay any additional taxes, interest or penalties, and that all taxation matters related to the issue are now closed.

The company said it was also in the process of getting back the roughly $657-million security it had provided to the CRA and the provinces of Quebec and Ontario for the potential taxes.