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B.C. Billionaire’s Real Estate Firms Allege ‘Pattern of Misconduct’ by CRA in Tax Case
The companies say the CRA acted outside policy and that forced payment would strip capital from active development projects.
- Companies controlled by billionaire B.C. property developer Terry Hui filed a Federal Court application this month, seeking to block the Canada Revenue Agency from collecting nearly $330 million in tax debts, most of which is accrued interest.
- The dispute stems from an audit initiated in 2013 regarding transactions dating back to 2007 that utilized Canada's tax treaty with Luxembourg. The companies allege the agency exhibited a "pattern of misconduct" by acting outside established policies.
- Adex Securities faces $45 million in debt plus more than $65 million in interest, while two Luxembourg-based companies owe more than $92 million plus $127 million in interest. The companies claim payment would cause "irreparable harm" to capital-intensive projects.
- Seeking to halt collection until a related case concludes, the companies object to the CRA demanding a $115 million security payment from Adex. They argue advance notice was absent, preventing financial planning for a debt of this magnitude.
- Justin Kutyan with KPMG Law noted earlier this year that these transactions resemble a structure upheld by the Supreme Court in 2021. In that case, the court ruled 6-3 in favor of Alta Energy Luxembourg regarding capital gains exemptions.
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36 Articles
B.C. billionaire Terry Hui's firms allege 'pattern of misconduct' by CRA in tax dispute
Five companies within Terry Hui's real estate development group are targeted in the audit by the CRA, including Adex Securities, One West Holdings, a B.C. numbered company and two Luxembourg-based shell companies.
·Ottawa, Canada
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B.C. billionaire’s real estate firms allege ‘pattern of misconduct’ by CRA in tax case
Companies controlled by billionaire B.C. property developer Terry Hui allege that the Canada Revenue Agency has engaged in a “pattern of misconduct” in its attempts to collect on ballooning tax debts dating as far back as 2007.
·Toronto, Canada
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The Toronto Star+6 Reposted by 6 other sources
B.C. billionaire’s real estate firms allege ‘pattern of misconduct’ by CRA in tax row
Companies controlled by billionaire B.C. property developer Terry Hui allege that the Canada Revenue Agency has engaged in a "pattern of misconduct" in its attempts to collect on ballooning tax
·Toronto, Canada
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Coverage Details
Total News Sources36
Leaning Left23Leaning Right0Center10Last UpdatedBias Distribution70% Left
Bias Distribution
- 70% of the sources lean Left
70% Left
L 70%
C 30%
Factuality
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