CALGARY, ALBERTA -- (Marketwired) -- 12/19/14 -- Olympia Financial Group Inc. (TSX: OLY) today announced that it has received an adverse tax ruling from the Tax Court of Canada declaring Olympia Trust Company ("OTC") to be a "purchaser" for the purposes of section 116(5) of the Income Tax Act (Canada), whereby OTC is liable for certain withholding tax obligations relating to share sale transactions completed by certain self-directed registered plans to non-residents from 2001 to 2004. Olympia is proceeding to appeal this adverse ruling and will also seek to enforce its contractual right to be indemnified for the tax liabilities from the annuitants that completed these transactions.
The adverse tax ruling relates to certain Notices of Assessment received in March 2010. Olympia remitted the assessed amount and had recorded such payment as a taxes recoverable asset of $1.27 million based on the probability of success for its appeal of the assessments (as determined by Olympia's advisor). In light of this recent adverse ruling, Olympia will record a charge in the fourth quarter of fiscal 2014 in the amount of approximately $1.27 million, the net after-tax effect of this being $0.95 million.
About Olympia Financial Group Inc.
Olympia Financial Group Inc. ("OFGI") conducts most of its operations through its wholly- owned subsidiary Olympia Trust Company, a non-deposit taking trust company. Olympia Trust Company is licensed to conduct trust activities in Alberta, British Columbia, Saskatchewan, Manitoba, Quebec, Newfoundland and Labrador, Prince Edward Island, New Brunswick and Nova Scotia. Olympia Trust Company administers self-directed registered accounts and offers foreign currency exchange services. OFGI also offers private health services plans through its wholly-owned subsidiary Olympia Benefits Inc and operates an ATM business through its wholly-owned subsidiary Olympia ATM Inc.
OFGI's common shares are listed on the Toronto Stock Exchange under the symbol "OLY".
Contacts:
Olympia Financial Group Inc.
Rick Skauge
President and Chief Executive Officer
(403) 261-0900
(403) 265-1455 (FAX)
Olympia Financial Group Inc.
Gerhard Barnard
Vice-President, Finance and Chief Financial Officer
(403) 261-0900
(403) 265-1455 (FAX)
