Cameco in tax dispute, accused of offshoring profits in Switzerland

|About: Cameco Corporation (CCJ)|By:, SA News Editor

Cameco (CCJ -1.5%) has avoided paying hundreds of millions of dollars in Canadian taxes by setting up a subsidiary in Switzerland, the Canada Revenue Agency says.

At issue is a deal CCJ made in 1999 - when uranium prices were much lower - to sell uranium to its wholly-owned Swiss subsidiary; the allegation is that the subsidiary then sold the uranium for more and recorded the profits in Switzerland, where taxes are lower.

CCJ says it hasn't done anything wrong and estimates it could end up owing as much as $850M in Canadian corporate taxes if it loses the case.