Coopers Park Corporation Announces Third Quarter Results
VANCOUVER, BRITISH COLUMBIA, Nov 18, 2012 (Menafn - MARKETWIRE via COMTEX) --Coopers Park Corporation ("Coopers Park" or the "Company")announced today that the net income for the three and the nine monthsended September 30, 2012 was 280,588 and 716,328 respectively ornil per share and 0.01 per share respectively. Net income for thethree and nine months ended September 30, 2011 was 1,245,205 and4,119,565. Net assets per share as at September 30, 2012 was 1.61per share compared with 1.59 at September 30, 2011.
The Company also announced today that it has been reassessed by theCanada Revenue Agency ("CRA") for the Company's taxation year endedin 2007. The reassessment relates to the reorganization (the"Reorganization") of the Company's wholly owned subsidiary, CoopersPark Real Estate Development Corporation. The Reorganization wascompleted in January, 2005. The reassessment revises the Company'staxable income for that year to 25,098,796, resulting in incometaxes and interest payable of 10,570,383 to the date of thereassessment. As at September 30, 2012, the income taxes and interestpayable for the 2007 taxation year were approximately 10,578,000,with interest continuing to accrue.
The Company has made a payment of 50% of the taxes and interest theCRA claims are owed for the 2007 taxation year, being 5,285,192.
It is possible that the Company may receive similar notices ofreassessment for its 2008 and 2009 taxation years, revising theCompany's taxable income for those years to 41,789,445 and49,614,704 respectively and resulting in approximately 18,496,000of additional income taxes and interest payable for those additionalyears, or a total of approximately 29,074,000 of income taxes andinterest payable as at September 30, 2012, for the three taxationyears of the Company ended in 2007, 2008 and 2009.
Coopers Park has engaged legal counsel. The Company remains confidentin the appropriateness of its tax filing position and the expectedtax consequences of the Reorganization. Coopers Park intends toappeal the reassessment and to vigorously contest the matter.However, there can be no assurance that the appeal will besuccessful. If the CRA is successful, the Company will be required topay the balance of the taxes claimed plus applicable interest; theimpact would be an increase to current income taxes and interestexpenses as at September 30, 2012 of approximately 29,074,000 or0.36 per share, and would reduce net assets per share at September30, 2012 from 1.61 to 1.25. If these taxes are payable, interestwould continue to accrue.
Coopers Park invests in multi-family residential condominiumdevelopments and in the information technology sector.
Contacts:
Coopers Park Corporation
Dennis Au-Yeung
Chief Financial Officer
(604) 895-8280
SOURCE: Coopers Park Corporation
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