Total Energy Services Inc.
TSX : TOT

Total Energy Services Inc.

September 02, 2015 12:37 ET

Total Energy Services Inc. Announces Receipt of CRA Notices of Reassessment

CALGARY, ALBERTA--(Marketwired - Sept. 2, 2015) - Total Energy Services Inc. ("Total" or the "Company") (TSX:TOT) has received notices of reassessment from the Canada Revenue Agency ("CRA") in respect of Total's 2010 and 2011 taxation years. Such reassessments relate to the 2009 conversion of Total from an income trust to a corporate structure. The reassessments disallow non-capital losses from prior years and result in Federal Part 1 tax owing of $9.6 million plus arrears interest of $1.9 million for a total balance owing of $11.5 million. Total is required to pay one-half of the total balance owing pending the appeal process, which amount will be paid by cash on hand.

These reassessments follow the previously disclosed receipt by Total of a proposal from CRA in April of 2015 purporting to issue such reassessments. Such reassessments are based entirely on CRA's application of the general anti-avoidance rule as the CRA has not challenged the technical aspects of Total's trust conversion transaction.

After careful consideration, due diligence and consultation with legal and tax advisors at the time of the conversion and subsequent to receiving the CRA proposal letter in April of 2015, Total remains of the opinion that its tax filing position is correct and the Company will vigorously defend such position. Total will also seek to recover from the CRA any and all costs and damages arising from the issuance of such reassessments to the fullest extent possible.

Total is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression and process equipment. The common shares of Total are listed and trade on the TSX under the symbol "TOT."

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

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