March 20, 2015 by admin

Target to get US$1.6B tax break in U.S. for leaving Canada

Toronto, Target Corp.’s swift exit from Canada will reap about US$1.6 billion in tax breaks for the retailer in the United States, according to documents filed with the U.S. Securities and Exchange Commission.
The Minneapolis, Mn.-based company says it has already recognized the majority of the tax benefits in its first quarter filings and expects to book most of the rest before the end of 2015.
The filings say Target made a “strategic shift” in its business when it chose to exit Canada.
Target Corp. announced in January that it would close all 133 Canadian stores, most which opened in 2013 in phases beginning in Ontario, saying it would take years to turn a profit.
The retailer has been in court to iron out the details of its departure, with a variety of creditors that include landlords, suppliers and others impacted by the closures.
Liquidation companies have been overseeing the sale of Target’s inventory since last month.