Target to receive US$1.6-billion tax break for its exit from Canada

BUSINESS

Target to receive US$1.6-billion tax break for its exit from Canada

The Canadian Press Published Thursday, March 19, 2015 11:18AM EDT

Target says it will discontinue operating stores in Canada. It currently has 133 locations and 17,600 employees across the country.

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TORONTO -- Target Corp.'s swift exit from Canada will reap about US$1.6 billion in tax breaks for the retailer in the United States, according to documents filed with the U.S. Securities and Exchange Commission.

The Minneapolis, Mn.-based company says it has already recognized the majority of the tax benefits in its first quarter filings and expects to book most of the rest before the end of 2015.

The filings say Target made a "strategic shift" in its business when it chose to exit Canada.

Target Corp. announced in January that it would close all 133 Canadian stores, most which opened in 2013 in phases beginning in Ontario, saying it would take years to turn a profit.

The retailer has been in court to iron out the details of its departure, with a variety of creditors that include landlords, suppliers and others impacted by the closures.

Liquidation companies have been overseeing the sale of Target's inventory since last month.