Bailout talks hit bump as taxman seeks $500-million from Chrysler

Globe and Mail reports:

The federal government has slapped a $500-million charge against Chrysler Canada Inc. as part of a high-stakes tax battle that is complicating government bailout negotiations for the troubled auto maker.

According to Federal Court documents obtained by The Globe and Mail, the Canada Revenue Agency began notifying Chrysler Canada in 2002 that it had been reassessed and owed “substantial increases” in taxes for three years starting in 1996. The reassessment, one of three issued against the company between 2002 and 2005, targeted the pricing of automobiles and parts that crossed the border between Chrysler Canada and its Detroit parent.