TORONTO, Nov. 26, 2018 (GLOBE NEWSWIRE) -- Tellza Inc. (“Tellza” or the “Company”) (TSX:TEL) announced today that it received a notice of (re)assessment from the Canada Revenue Agency (“CRA”) denying input tax credit previously claimed by the Company related to an audit commenced by the CRA in 2016 together with Gross Negligence Penalties and arrears interest charges totaling to $17.5 million. In addition, the CRA has also proposed to deny a claim made by Tellza for a rebate of tax paid in error and to assess a further Gross Negligence Penalty in respect of that claim.
Tellza’s management believes that the CRA’s position is without merit and it will continue to vigorously defend against these claims. Tellza has submitted evidence together with third party expert reports to the CRA on the merits of its position. Tellza is continuing to work with the CRA to resolve this matter. Tellza will be filing notice of objections in respect of this matter and, if necessary, will initiate proceedings before the Tax Court to seek and obtain relief from CRA’s claims. However, there is no certainty as to the timing or the ultimate disposition of this matter.
Due to the ongoing CRA matter, Tellza has had to delay the filing of its financial disclosure as at and for the periods ended December 31, 2017, March 31, 2018, June 30, 2018, and September 30, 2018 as well as the calling and holding of its 2018 annual meeting of shareholders beyond the respective due dates for those requirements. Tellza’s default in filing its financial disclosures on a timely basis resulted in its stock being cease traded by securities regulatory authorities. Tellza expects to become current in its filings following a resolution of its ongoing matters with the CRA. However, if this cannot be achieved by January 2019, Tellza expects that its common shares will be subject to delisting prceedings by the TSX due to its continued non-compliance with its reporting obligations.
Tellza also announced that Mr. Mike Vazquez, Chief Executive Officer, has also been appointed Chief Financial Officer of Tellza.
About TELLZA
TELLZA is focused on Telecommunications.
Caution Regarding Forward Looking Information:
This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. TELLZA’s actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See www.sedar.com which contains all securities files.
Contact:
Michael Vazquez, Tellza Inc., CEO
Phone - +954-624-8143
Email: mike@tellza.com