One problem with this tax bill is the time at which it's coming. Chrysler has pledged that any monies received as part of bailout negotiations would go to keeping the operations going, not to pay back taxes. Also, there's a treaty between Canada and the United States that allows Chrysler to ask for a break in the US when Canada turns up the wick on fiduciary obligations. The treaty states that authorities must be made aware of reassessments within six years of the disputed year, and since this issue stretches all the way back to 1996, Chrysler argues that the last reassessment, in 2005, deprives the company of the option of asking for a tax break because it's outside of the six year window. For now, the dispute will have to wait, as there may not be a Chrysler for much longer if things don't get sorted -- meaning a big, fat goose egg of a tax payment.
[Source: The Globe and Mail]