B.C. developer's firms fight CRA over $330M tax bill tied to Calgary projects
Real estate companies controlled by billionaire Terry Hui say Canada Revenue Agency collection tactics threaten capital-intensive projects in Calgary, Toronto and Vancouver.
Why it matters
The dispute involves capital tied to active real estate development projects in Calgary that could be affected by the outcome of the court case.
Five real estate companies controlled by B.C. billionaire Terry Hui have filed a Federal Court application alleging the Canada Revenue Agency showed a "pattern of misconduct" while pursuing tax debts dating back to 2007. The companies, including Adex Securities, One West Holdings, a B.C. numbered company and two Luxembourg-based entities, say the debts now total nearly $330 million, most of it accrued interest.
The group is involved in capital-intensive real estate development in Toronto, Vancouver and Calgary. The CRA audit at the centre of the dispute began in 2013 and focused on transactions that used Canada's tax treaty with Luxembourg. This year's assessments include $45 million owed by Adex plus more than $65 million in interest, while the two Luxembourg companies together owe over $92 million with $127 million in interest.
The companies are asking the court to pause collection until a related case concludes, and are objecting to a CRA demand for a $115 million security payment from Adex, arguing it would drain capital needed for active development projects. They say they received no advance notice of the scale of the debt and that forced payment would cause "irreparable harm."
A lawyer not involved in the case told The Canadian Press the transactions resemble a structure the Supreme Court of Canada upheld in 2021 involving Alta Energy Luxembourg, ruling tax authorities could not use anti-avoidance rules to effectively rewrite a treaty. The CRA said it had no spokesperson available to comment on the allegations.
Compiled by the Alberta Daily Desk — an AI-written summary of reporting from the credited sources below, produced and reviewed under our editorial policy.