Zentek Announces Results of Canada Revenue Agency Audit
Zentek (NASDAQ:ZTEK) has announced the completion of a Canada Revenue Agency (CRA) audit regarding the company's 2018 and 2019 renunciation of Canadian exploration expenses (CEE). The audit, completed on January 14, 2025, focused on flow-through common shares private placements that raised $4,210,000.
The CRA's reassessment for 2018 resulted in a reclassification of approximately $507,000 (16.895%) of renounced amounts, as they did not meet CEE definition requirements. This led to a Part XII.6 tax assessment of $59,693. A similar reclassification is expected for 2019, with details pending.
The company will indemnify affected subscribers within 20 business days for tax attributable to disallowed CEE renunciations, with maximum liability estimated at approximately $527,000. Subscribers affected by CRA reassessments are directed to contact fts@zentek.com for indemnification claims.
Zentek (NASDAQ:ZTEK) ha annunciato il completamento di un audit dell'Agenzia delle Entrate canadese (CRA) riguardante la rinuncia da parte dell'azienda delle spese di esplorazione canadese (CEE) per gli anni 2018 e 2019. L'audit, completato il 14 gennaio 2025, si è concentrato su collocamenti privati di azioni ordinarie con flusso di cassa che hanno raccolto $4.210.000.
La rivalutazione della CRA per il 2018 ha portato a una riclassificazione di circa $507.000 (16,895%) degli importi rinunciati, poiché non soddisfacevano i requisiti di definizione delle CEE. Questo ha comportato una valutazione fiscale ai sensi della Parte XII.6 di $59.693. Si prevede una riclassificazione simile per il 2019, con dettagli in attesa.
L'azienda indennizzerà gli abbonati interessati entro 20 giorni lavorativi per le tasse attribuibili alle rinunce CEE non ammesse, con una responsabilità massima stimata di circa $527.000. Gli abbonati colpiti dalle rivalutazioni della CRA sono invitati a contattare fts@zentek.com per le richieste di indennizzo.
Zentek (NASDAQ:ZTEK) ha anunciado la finalización de una auditoría de la Agencia de Ingresos de Canadá (CRA) relacionada con la renuncia de la empresa a los gastos de exploración canadienses (CEE) para los años 2018 y 2019. La auditoría, completada el 14 de enero de 2025, se centró en colocaciones privadas de acciones comunes con flujo de caja que recaudaron $4,210,000.
La reevaluación de la CRA para 2018 resultó en una reclasificación de aproximadamente $507,000 (16.895%) de los montos renunciados, ya que no cumplían con los requisitos de definición de CEE. Esto llevó a una evaluación fiscal de la Parte XII.6 de $59,693. Se espera una reclasificación similar para 2019, con detalles pendientes.
La empresa indemnizará a los suscriptores afectados dentro de los 20 días hábiles por los impuestos atribuibles a las renuncias de CEE no permitidas, con una responsabilidad máxima estimada en aproximadamente $527,000. Los suscriptores afectados por las reevaluaciones de la CRA deben contactar a fts@zentek.com para reclamaciones de indemnización.
젠텍 (NASDAQ:ZTEK)은 2018년과 2019년 캐나다 탐사비용(CEE)에 대한 회사의 포기를 다룬 캐나다 국세청(CRA) 감사 완료를 발표했습니다. 2025년 1월 14일에 완료된 이 감사는 $4,210,000를 모금한 유상증자에 초점을 맞췄습니다.
2018년 CRA의 재평가는 약 $507,000(16.895%)의 포기 금액이 CEE 정의 요건을 충족하지 않아 재분류되었음을 나타냈습니다. 이로 인해 Part XII.6 세금 평가가 $59,693 발생했습니다. 2019년에도 유사한 재분류가 예상되며, 세부 사항은 대기 중입니다.
회사는 허용되지 않은 CEE 포기로 인한 세금에 대해 영향을 받은 구독자에게 20영업일 이내에 보상할 것이며, 최대 책임은 약 $527,000로 추정됩니다. CRA 재평가의 영향을 받은 구독자는 fts@zentek.com으로 보상 청구를 위해 연락해야 합니다.
Zentek (NASDAQ:ZTEK) a annoncé l'achèvement d'un audit de l'Agence du revenu du Canada (ARC) concernant le renoncement de l'entreprise aux dépenses d'exploration canadienne (CEE) pour les années 2018 et 2019. L'audit, terminé le 14 janvier 2025, s'est concentré sur des placements privés d'actions ordinaires qui ont permis de lever 4 210 000 $.
La réévaluation de l'ARC pour 2018 a entraîné une reclassification d'environ 507 000 $ (16,895 %) des montants renoncés, car ils ne répondaient pas aux exigences de définition des CEE. Cela a entraîné une évaluation fiscale de la Partie XII.6 de 59 693 $. Une reclassification similaire est attendue pour 2019, les détails étant en attente.
L'entreprise indemnisera les abonnés concernés dans un délai de 20 jours ouvrables pour les impôts attribuables aux renoncements CEE non autorisés, la responsabilité maximale étant estimée à environ 527 000 $. Les abonnés touchés par les réévaluations de l'ARC sont invités à contacter fts@zentek.com pour les demandes d'indemnisation.
Zentek (NASDAQ:ZTEK) hat den Abschluss einer Prüfung durch die Canada Revenue Agency (CRA) bekannt gegeben, die die Verzichtserklärungen des Unternehmens auf kanadische Erkundungskosten (CEE) für die Jahre 2018 und 2019 betrifft. Die Prüfung, die am 14. Januar 2025 abgeschlossen wurde, konzentrierte sich auf Privatplatzierungen von Stammaktien, die $4.210.000 einbrachten.
Die Neubewertung der CRA für 2018 führte zu einer Umklassifizierung von etwa $507.000 (16,895%) der renunzierten Beträge, da diese nicht den Anforderungen der CEE-Definition entsprachen. Dies führte zu einer Steuerbewertung nach Teil XII.6 von $59.693. Eine ähnliche Umklassifizierung wird für 2019 erwartet, die Details stehen noch aus.
Das Unternehmen wird betroffenen Abonnenten innerhalb von 20 Geschäftstagen für Steuern, die auf nicht zulässige CEE-Verzichte entfallen, eine Entschädigung leisten, wobei die maximale Haftung auf etwa $527.000 geschätzt wird. Betroffene Abonnenten der CRA-Neubewertungen werden aufgefordert, sich unter fts@zentek.com für Entschädigungsansprüche zu melden.
- None.
- CRA audit resulted in $59,693 tax assessment for 2018
- Company faces potential liability of $527,000 for subscriber indemnification
- $507,000 of expenses failed to qualify as Canadian exploration expenses
- Additional reclassification expected for 2019 expenses
Insights
The CRA audit results represent a notable financial setback for Zentek, creating an unexpected liability of approximately
The financial impact needs to be viewed in proper context - while representing a clear negative development, the potential liability constitutes only about
What's particularly significant is the company's need to indemnify affected investors within 20 business days of their reassessment notices. This creates a short-term liquidity requirement that requires immediate attention. While the article doesn't specify Zentek's current cash position, this obligation represents a clear cash outflow that wasn't previously factored into financial projections.
The reputational element matters here too - while this appears to be a technical compliance issue rather than any suggestion of deliberate misconduct, it may raise questions about financial governance and expense classification practices. The transparency in this announcement and establishment of a dedicated contact channel for affected investors demonstrates appropriate remediation steps.
GUELPH, ON / ACCESS Newswire / March 21, 2025 / Zentek Ltd. ("Zentek" or the "Company") (NASDAQ:ZTEK)(TSXV:ZEN), announces that the Canada Revenue Agency ("CRA") has completed an audit (the "Audit") on January 14, 2025 of the Company's 2018 and 2019 renunciation of Canadian exploration expenses ("CEE") in favour of subscribers of the private placements of flow-through common shares which closed on December 21, 2018 and December 20, 2019 (the "Flow-Through Financings") for aggregate gross proceeds of
On February 25, 2025, the Company received a notice of reassessment from CRA in respect of its 2018 financial year resulting in a reclassification of approximately
Subscribers of the Flow-Through Financings will be contacted directly by the CRA regarding a reassessment of deductions claimed in connection with the Reclassified Expenses. Pursuant to the terms of the subscription and renunciation agreements (the "Subscription Agreements") entered into by the Company and the subscribers in connection with the Flow-Through Financings, the reduction in renounced CEEs will be made on a pro rata basis among all subscribers of the same financing.
Furthermore, pursuant to the Subscription Agreements, the Company has agreed to indemnify the subscribers within 20 business days for tax attributable to disallowed renunciations of CEEs. The Company invites subscribers of the Flow-Through Financings who have received notices of reassessment from CRA to contact fts@zentek.com as soon as possible to exercise their right of indemnification and for more information about next steps. The maximum aggregate quantum of the Company's liability with respect to this indemnification obligation from the Flow-Through Financings is expected to be approximately
About Zentek Ltd.
Zentek is an ISO 13485:2016 certified intellectual property technology company focused on the research, development and commercialization of novel products seeking to give the Company's commercial partners a competitive advantage by making their products better, safer, and greener.
Zentek's patented technology platform ZenGUARD™, is shown to significantly increase the bacterial and viral filtration efficiency for surgical masks and aims to do the same for HVAC (heating, ventilation, and air conditioning) systems. Zentek's ZenGUARD™ production facility is in Guelph, Ontario.
For further information:
Investorrelations@zentek.com
Ryan Shacklock
Senior VP, Strategy & Business Development
Email: rshacklock@zentek.com
Phone: 306-270-9610
To find out more about Zentek, please visit our website at www.Zentek.com. A copy of this news release and all material documents in respect of the Company may be obtained on Zentek's SEDAR+ profile at http://www.sedarplus.ca/.
Forward-Looking Statements
This news release contains forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although Zentek believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Zentek disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Zentek
View the original press release on ACCESS Newswire