Canada Revenue Agency has rejected the tax deal Pacific West Commercial Corp. had proposed as part of their proposal to purchase the NewPage Port Hawkesbury mill.
The rejected proposal would have allowed Pacific West Commercial Corp. to use $1 billion of accumulated losses by NewPage against its taxes. Also, Nova Scotia Power would become a 30% owner in the mill and get paid in tax free dividends.
If the sale of the NewPage Port Hawkesbury mill goes ahead there are no plans to dismantle or sell the mill’s older newsprint machine, even though it will not operate, an official with the company working to buy it says.
Richmond County is appealing a Nova Scotia Supreme Court decision that allowed a bid by the company looking to reopen the NewPage paper mill to cancel its municipal tax deal to go ahead.
The prospective owner of the idled NewPage Port Hawkesbury mill in Cape Breton says the company is looking at options to diversify markets for the mill’s products.
Marc Dube, the restructuring manager for Pacific West Commercial Corp., told the Antigonish Chamber of Commerce on Wednesday that would mean making more than paper from their fibre supply, including extracting sugar, which can also be used in pharmaceuticals and cosmetics.
