VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov 18, 2012) - Coopers Park Corporation ("Coopers Park" or the "Company") announced today that the net income for the three and the nine months ended September 30, 2012 was $280,588 and $716,328 respectively or $nil per share and $0.01 per share respectively. Net income for the three and nine months ended September 30, 2011 was $1,245,205 and $4,119,565. Net assets per share as at September 30, 2012 was $1.61 per share compared with $1.59 at September 30, 2011.
The Company also announced today that it has been reassessed by the Canada Revenue Agency ("CRA") for the Company''s taxation year ended in 2007. The reassessment relates to the reorganization (the "Reorganization") of the Company''s wholly owned subsidiary, Coopers Park Real Estate Development Corporation. The Reorganization was completed in January, 2005. The reassessment revises the Company''s taxable income for that year to $25,098,796, resulting in income taxes and interest payable of $10,570,383 to the date of the reassessment. As at September 30, 2012, the income taxes and interest payable 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 the CRA claims are owed for the 2007 taxation year, being $5,285,192.
It is possible that the Company may receive similar notices of reassessment for its 2008 and 2009 taxation years, revising the Company''s taxable income for those years to $41,789,445 and $49,614,704 respectively and resulting in approximately $18,496,000 of additional income taxes and interest payable for those additional years, or a total of approximately $29,074,000 of income taxes and interest payable as at September 30, 2012, for the three taxation years of the Company ended in 2007, 2008 and 2009.
Coopers Park has engaged legal counsel. The Company remains confident in the appropriateness of its tax filing position and the expected tax consequences of the Reorganization. Coopers Park intends to appeal the reassessment and to vigorously contest the matter. However, there can be no assurance that the appeal will be successful. If the CRA is successful, the Company will be required to pay the balance of the taxes claimed plus applicable interest; the impact would be an increase to current income taxes and interest expenses as at September 30, 2012 of approximately $29,074,000 or $0.36 per share, and would reduce net assets per share at September 30, 2012 from $1.61 to $1.25. If these taxes are payable, interest would continue to accrue.
Coopers Park invests in multi-family residential condominium developments and in the information technology sector.