By: E&P Staff
Sun-Times Media Group (STMG) will pay US$40 million to the Canadian Revenue Agency to settle tax issues related to the sales in 2000 of some of its former Canadian properties, the parent corporation of the Chicago Sun-Times said Thursday.
“The company estimates that this settlement will result in a material reduction of its reserve for potential tax liabilities, which will be recorded in the second quarter of 2007,” STMG said in a statement.
STMG carries $605 million in liabilities on its balance sheet for various Canadian tax claims — effectively a huge poison pill deterring potential buyers for the Sun-Times and its cluster of about 100 papers.
This particular settlement is related to the $2.1 billion sale of Canadian papers to CanWest Global Communications.