Franco-Nevada Reaches Settlement on Canadian Tax Disputes
By Kelly Cloonan
Franco-Nevada reached a settlement with the Canada Revenue Agency, resolving a tax dispute related to the income of two of its foreign subsidiaries.
The gold-focused royalty and streaming company said Thursday the settlement won't require it to pay any Canadian tax on the foreign earnings of its businesses in Barbados and Mexico from the years 2013 to 2019.
Additionally, the company will charge a greater service fee for certain services provided to the subsidiaries to increase the mark-up applied to its cost of providing those services. As a result, Franco-Nevada will be subject to Canadian tax on additional income of C$1.4 million ($1 million) for the 2013 to 2019 taxation years.
Franco-Nevada doesn't anticipate any additional cash taxes will arise for those years as a result of the settlement.
Chief Executive Paul Brink said the company believes the settlement is a great outcome, providing greater investment certainty for its global growth ambitions.
"We can now continue to focus on adding high-quality, long-life assets to our diverse portfolio," he said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
September 11, 2025 18:24 ET (22:24 GMT)
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