Olympia Financial Group Inc. Announces First Quarter Results & Provides Update on Withholding Tax Issue
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 05/12/15 -- Olympia Financial Group Inc. (TSX: OLY) today announced its operating and financial results for the period ending March 31, 2015.
The unaudited condensed interim financial statements and notes, as well as management's discussion and analysis, are now available on SEDAR ().
Results from Continuing Operations for the three months ending March 31, 2015 include the following (compared to the three months ending March 31, 2014):
Update on Withholding Tax Issue
As previously announced, Olympia Trust Company ("Olympia Trust") received a proposal letter (the "2015 CRA Proposal") from CRA dated April 7, 2015 wherein the CRA advises that they will be issuing a Notice of Assessment against Olympia Trust for withholding taxes owing in accordance with Section 116(5) of the Income Tax Act (Canada) (the "Tax Act") as a result of certain Olympia Trust clients purchasing securities from a non-resident through their self-directed registered plan in the years 2000 through 2002.
The total amount of the 2015 CRA Proposal is approximately $4.9 million, which amount includes withholding taxes of $1.73 million, penalties of $0.17 million and arrears interest of $3.0 million. However, the 2015 CRA Proposal acknowledges that a substantial amount of time has elapsed since the dates of the subject client transactions and invited Olympia Trust to make submissions requesting that the CRA exercise discretion to waive the arrears interest. Olympia Trust has submitted its request to CRA to have the arrears interest waived on May 7, 2015.
To date, Olympia Trust has only received the 2015 CRA Proposal and has not received any Notices of Assessment requiring a payment to CRA. As Olympia Trust strongly disagrees with the CRA's position contained in the 2015 CRA Proposal, Olympia Trust has made submissions to CRA challenging the assessing position taken by CRA in the 2015 CRA Proposal and continues to firmly believe it will be able to successfully defend its position. Olympia Trust disagrees with the 2015 CRA Proposal for two primary reasons. First, Olympia Trust has appealed the Tax Court of Canada ("Tax Court") decision in Olympia Trust Company v. R., 2014 TCC 372 whereby the Federal Court of Appeal will consider whether the Tax Court erred in law in finding a trustee of a registered plan to be the "purchaser" for the purposes of Section 116(5) of the Tax Act. In the event Olympia Trust is successful on appeal, the CRA would likely change its assessing position outlined in the 2015 CRA Proposal. Second, in the event that Olympia Trust is unsuccessful on its appeal, there are significant arguments flowing from the factual and legal findings in R. v. Kendall et al, 2015 ABQB 177, that support the view that no withholding taxes are owing to CRA in connection with the subject transactions. Further, in the event that Olympia Trust incurs any liabilities to CRA in connection with the 2015 Proposal Letter, Olympia Trust intends on claiming against its customers involved in the transactions as each such customer has provided Olympia Trust with an indemnity as part of the account agreement between the parties. Olympia Trust would also advance a legal claim against the lawyers for the alleged non-resident vendor for negligence.
Olympia Trust's appeal of the Tax Court decision discussed above also effects the $1.28 million that was previously paid to CRA in connection with Notices of Assessment issued on March 22, 2010 (the "2010 Assessments"). In the event Olympia Trust is successful on appeal, the CRA would likely change its assessing position for the 2010 Assessments, allowing Olympia Trust to recover the amounts previously paid, therefore Olympia has a contingent gain (but no additional exposure).
Cautionary note regarding forward-looking statements
Certain statements contained in this press release may constitute forward-looking statements. These statements relate to future events or Olympia's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "propose", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Olympia believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct. Any forward-looking statements included in this press release should not be unduly relied upon by investors, as actual results may vary. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement.
Although Olympia's management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results to not be as anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this press release and Olympia disclaims any obligation to update any forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
About Olympia Financial Group Inc.
Olympia Financial Group Inc. ("OFGI") conducts most of its operations through its wholly-owned subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc. and operates an ATM business through its wholly-owned subsidiary Olympia ATM Inc.
OFGI's common shares are listed on the Toronto Stock Exchange under the symbol "OLY".
Contacts:
Olympia Financial Group Inc.
Rick Skauge, President and Chief Executive Officer
Gerhard Barnard, VP, Finance and Chief Financial Officer
Phone: (403) 261-0900
Fax: (403) 265-1455
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Datum: 13.05.2015 - 00:44 Uhr
Sprache: Deutsch
News-ID 392813
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CALGARY, ALBERTA
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Commercial & Investment Banking
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