Target gets $1.6B tax break in U.S. for filing Canadian bankruptcy
Source: The Globe and Mail
U.S. discounter Target Corp. will reap some benefits from its troubled foray into Canada that has left angry creditors with hundreds of millions of dollars of debts.
The retailer, whose Canadian division filed for bankruptcy protection on Jan. 15, will collect a $1.6-billion (U.S.) tax break in the United States as a result of its move to retreat from this country, according to a new filing.
It’s a benefit that Target Canada’s creditors would like to get a piece of. “I think they should give it back to creditors,” Stavros Gavrilidis, a pharmacist at the Target store in Windsor, Ont., said in an interview. He’s a representative of the retailer’s franchised pharmacists who estimate they’re owed hundreds of thousands of dollars by Target Canada.
Creditors are pushing to find ways to recover their losses from Target’s collapse. Now, amid signs the retailer itself may be the biggest beneficiary of the eventual payouts, the disclosure of the tax break has raised further concerns in the insolvency process.
Read more: http://www.theglobeandmail.com/report-on-business/target-lands-16-billion-tax-break-as-creditors-fight-for-payback/article23528282/
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