A billionaire developer's firms accuse the CRA of a ‘pattern of misconduct’

Tax debts the CRA is collecting

330 $ million

Companies controlled by British Columbia billionaire developer Terry Hui went to Federal Court this month. They say the Canada Revenue Agency wrongly moved to collect tax debts of nearly $330 million, most of it accrued interest.

Companies in the audit

• Adex Securities
• One West Holdings
• A B.C. numbered company
• Two Luxembourg-based shell companies

The audit, started in 2013, targets five companies in the group and transactions that relied on Canada's tax treaty with Luxembourg.

The companies want collection stopped until a related case is decided, and object to a $115 million security payment the CRA wants from Adex. They say it would drain capital funding projects in Toronto, Vancouver and Calgary.

Background

In 2021, the Supreme Court of Canada ruled 6-3 for Alta Energy Luxembourg in a case on the same treaty, which a tax lawyer has called similar. The CRA had no spokesperson available to comment.