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Royal Bank of Canada Resolves Several Outstanding Tax Matters
All amounts are unaudited and in Canadian dollars unless otherwise noted.
TORONTO, May 28, 2012 - Royal Bank of Canada (RY
on TSX and NYSE) today announced that it has resolved several
tax matters and will release approximately $130 million of
tax uncertainty provisions previously recorded against businesses
which were discontinued in previous years. In addition, RBC
will earn interest income of $70 million ($50 million after-tax)
related to a refund of taxes paid in previous years. The financial
impact of this settlement will be reflected in RBC's third
quarter results.
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Investor Relations Contacts
Robert Colangelo, Associate Director,
Investor Relations, robert.colangelo@rbc.com,
416-955-2049
Media Relations Contacts
Tanis Robinson, Director, Financial Communications,
tanis.robinson@rbc.com,
416-955-5172
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may be deemed to
be forward-looking statements under certain securities laws,
including the "safe harbour" provisions of the United
States Private Securities Litigation Reform Act of 1995
and any applicable Canadian securities legislation. These
forward-looking statements include, but are not limited to,
statements relating to the financial impact of our settlement
with the CRA. Forward-looking statements are typically identified
by words such as "believe", "expect",
"foresee", "forecast", "anticipate",
"intend", "estimate", "goal",
"plan" and "project" and similar expressions
of future or conditional verbs such as "will", "may",
"should", "could" or "would".
By their very nature, forward-looking statements require
us to make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not
be correct and that the financial impact of our settlement
with the CRA will not be achieved. We caution readers not
to place undue reliance on these statements as a number of
risk factors could cause our actual results to differ materially
from the expectations expressed in such forward-looking statements.
These factors include, but are not limited to, changes in
accounting standards, policies and estimates, including changes
in our estimates of provisions, allowances and valuations;
the impact of changes in laws and regulations; and judicial
or regulatory judgments and legal proceedings.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. Additional information about these and other factors
can be found in our Q2 2012 Report to Shareholders and our
2011 Annual Report.
Except as required by law, we do not undertake to update
any forward-looking statement contained in this press release
About RBC
Royal Bank of Canada (RY on TSX and NYSE) and its subsidiaries
operate under the master brand name RBC. We are Canada's largest
bank as measured by assets and market capitalization, and
are among the largest banks in the world, based on market
capitalization. We are one of North America's leading diversified
financial services companies, and provide personal and commercial
banking, wealth management services, insurance, corporate
and investment banking and transaction processing services
on a global basis. We employ approximately 74,000 full- and
part-time employees who serve more than 15 million personal,
business, public sector and institutional clients through
offices in Canada, the U.S. and 51 other countries. For more
information, please visit rbc.com.
Trademarks used in this release include the LION & GLOBE
Symbol, ROYAL BANK OF CANADA and RBC which are trademarks
of Royal Bank of Canada used by Royal Bank of Canada and/or
by its subsidiaries under license.
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