Zentek Ltd. Faces Reassessment from CRA for 2019

Zentek Ltd. has announced the receipt of a reassessment notice from the Canada Revenue Agency (CRA) concerning its 2019 financial year. This reassessment stems from a previous audit focusing on the company's renunciations of Canadian exploration expenses (CEE). The CRA has reclassified approximately $199,000 of these expenses, asserting they do not meet the defined criteria for CEEs. Consequently, a tax payable under Part XII.6 has been assessed at $22,481.89.

Subscribers involved in the 2018-2019 flow-through financings will be contacted by the CRA regarding adjustments to their claimed deductions. Zentek has committed to indemnifying subscribers for any taxes linked to these disallowed renunciations, with a total potential liability of $427,000.

Expecting further implications, Zentek urges affected subscribers to reach out promptly to their provided contact for indemnification and guidance.