Bonterra gets notice of possible CRA tax reassessment; could face bill of $25M

CALGARY – Bonterra Energy Corp. (TSX:BNE) is facing a possible tax reassessment that could result in the oil and gas producer owing as much as $25 million.

Bonterra said Wednesday that it has been notified by the Canada Revenue Agency of the possible reassessment of taxation years since Nov. 18, 2008, when the company converted from an income trust to a corporation.

“If such reassessments are issued and maintained on appeal, Bonterra will owe total cash taxes of approximately $25 million for the five taxation years since the conversion,” the company said in a news release issued after markets closed.

The company said it remains of the opinion that, “after careful consideration and consultation at the time of the conversion, Bonterra’s subsequent tax returns were correct as filed.”

The company said if the proposed reassessments are issued “management will vigorously defend Bonterra’s tax-filing position.”

Meanwhile, Bonterra said the proposed reassessment will not affect its strategy going forward, nor the amount of its monthly dividend distributions.

Bonterra Energy Corp. is a conventional oil and gas corporation with operations in Alberta, Saskatchewan and British Columbia.