TORONTO (Reuters) - Royal Bank of Canada (RY.TO) will register a C$180 million ($175.57 million) boost to its third-quarter results after resolving a tax dispute with Canada Revenue Agency in the bank’s favor.
RBC, Canada’s largest lender, said on Monday it would release C$130 million from provisions taken to guard against potential losses stemming from the dispute.
RBC spokeswoman Tanis Robinson said the bank had challenged a CRA reassessment of taxes centered on capital markets businesses the bank has since exited.
“We resolved these tax matters with the CRA... so we released the provisions,” she said.
The bank also will take a C$50 million gain on interest income from a tax refund related to the same issue, the bank said. The total amount will be reflected in the bank’s third-quarter results.
The Toronto-based bank has total assets of about C$800 billion, according to Reuters data. It earned about C$1.6 billion from continuing operations in the second quarter.
Reporting By Cameron French and Euan Rocha; Editing by Frank McGurty