Loyalty program Aimia expects big tax bill after audit by Canada Revenue Agency

Loyalty program Aimia expects big tax bill after audit by Canada Revenue Agency
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MONTREAL — Loyalty program Aimia Inc. says it expects to pay a bill of about $30 million plus another $5 million in interest following an audit by the Canada Revenue Agency.

The Montreal-based company says CRA has concluded its audit and a re-assessment is expected.

Aimia says it will make the payment using a portion of a $100-million restricted cash account set up as part of the sale of its Aeroplan program.

However, Aimia says once it receives the notice of re-assessment it plans to vigorously contest the case.

Aimia owns and operates the Air Miles Middle East loyalty program and also own stakes in other loyalty programs.

The company completed the sale of its flagship Aeroplan program to a consortium led by Air Canada earlier this year.

Companies in this story: (TSX:AIM)

The Canadian Press

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