Data-driven marketing and loyalty analytics company Aimia Inc. today provided an update on the Canada Revenue Agency (CRA) 2013 audit of Aimia Canada Inc.
Aimia has received a ‘Final letter for the 2012 and 2013 taxation years’ from the CRA concluding on their audit. A notice of re-assessment is expected to follow.
The assessed amount is expected to be approximately $30 million in income taxes payable in addition to interest payable of up to $5 million. Aimia is planning to use available tax attributes to mitigate the potential interest cost that may be incurred. Aimia will fund the amounts due upon receipt of the re-assessment from the $100 million restricted cash account set up as part of the sale of Aimia Canada Inc. The balance of the funds in the restricted cash account would be released to Aimia in accordance with the terms of the share purchase agreement between Aimia and Air Canada.
In keeping with the company’s previous statements, Aimia continues to hold to its position that, once it receives the notice of re-assessment, it would vigorously contest the matter. The company believes that it is more likely than not that it would prevail in such recourse procedures, based on the external advice it has received. Should Aimia Canada Inc. be successful in its recourse procedures, any amounts that were remitted to the CRA from the $100 million restricted cash account would be returned to Aimia.
Aimia Inc. is a global data-driven marketing and loyalty analytics company, providing clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both clients and consumers. Aimia partners with companies to help generate, collect and analyze customer data and build actionable insights.
Aimia owns and operates the Air Miles Middle East loyalty program and also own stakes in other loyalty programs, such as Club Premier in Mexico and Think Big, a partnership with Air Asia and Tune Group.