A group of B.C. property firms, led by prominent developer Terry Hui, is sounding the alarm over a $91-million tax bill. They claim that if the Canada Revenue Agency (CRA) forces payment, it will derail future construction projects across the province.
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The dispute stems from a decade-long audit into transactions between 2007 and 2013.
- The Accusation: The CRA alleges the firms used offshore accounts in Luxembourg to improperly avoid taxes (tax treaty abuse).
- The Defense: The developers argue the transactions were standard business practices, citing a 2021 Supreme Court ruling that protected similar structures.
Why It Matters for Housing
The firms—including Adex Securities and One West Holdings—have taken the federal government to court, claiming “irreparable harm” if the assessment stands.
- Project Freezes: The companies argue that losing $91 million in liquidity would force them to cancel at least two major future construction projects.
- Economic Ripple Effects: With B.C. already facing a housing shortage and a record provincial deficit, the loss of private development could further squeeze the market.
- Alleged Misconduct: The developers didn’t hold back, accusing the CRA of aggressive “cash-grabbing” tactics to meet internal performance metrics amid federal budget pressure.
