Porter CEO battling CRA over tax bill from 'significant losses' from 'high-risk' pandemic trading
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OTTAWA — Porter Airlines' CEO is fighting the CRA over a six-figure tax bill linked to an unsuccessful incursion into 'high risk' trading in the early months of the COVID-19 pandemic that cost him over $5.7 million.
When the COVID-19 pandemic hit Canada in March 2020, Porter's top executive Michael Deluce saw opportunity. As economies suddenly shuttered and investors scrambled to grapple with the global pandemics, markets experienced some of the largest one-day swings in nearly four decades.
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Vancouver Sun
5 hours ago
- Vancouver Sun
Canada's tax court rejects appeal from accused in B.C.'s largest alleged money-laundering operation
The Tax Court of Canada has dismissed appeals over undeclared income of more than $6 million from two people who were implicated in B.C.'s largest alleged money-laundering operation. Paul King Jin and his wife Xiaoqi (Apple) Wei had appealed Canada Revenue Agency reassessments of 'undeclared' income, which the CRA said came from a money-lending business that charged steep interest, as much as 10 per cent a week, a massage parlour business since sold, and a property sale. The appeals were rejected, in part, because Jin and Wei did not show up for hearings last year, according to judgments obtained by Postmedia. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The CRA had asked for a dismissal of the appeals, which Tax Court Justice David Spiro granted, for Jin and Wei's 'failure to prosecute them with due dispatch.' The court allowed appeals from Caixuan Qin and Silver International, an alleged and now defunct underground bank in Richmond, and sent their cases back to the minister of national revenue for reconsideration. The Canada Revenue Agency would not say what are the next steps or whether they would seek taxes and penalties from Jin and Wei for the undeclared income, citing privacy laws. The CRA had alleged that Jin and Wei made or assented to making false statements or omissions in their tax returns, that included failing to report income from the money-lending business. 'Those false statements or omissions were made … knowingly or under circumstances amounting to gross negligence,' said the CRA's court filings. A gross negligence penalty can be as much as 50 per cent on top of the tax owed on unreported income. In its court filings, the CRA said Jin had undeclared income of $3.62 million from 2009-2015 and Wei had $2.76 million in undeclared income from 2012-2015. During that period, Jin reported income of just more than $269,000, an average of less than $40,000 a year, said the CRA. Wei reported income of $69,301, including $1 in 2013. All four parties argued the information used to make the tax reassessments violated their Charter rights because it came from a failed 2015 RCMP investigation into money laundering. Of the parties, only Qin faced criminal charges as a result of the RCMP investigation, charges that were stayed in 2018. No criminal charges were laid against Jin and Wei in the case, which alleged as much as $220 million in dirty money was washed using wealthy Asian gamblers. Qin was accused of operating the underground bank. Jin was accused of receiving nearly $27 million from the bank during a 4½ month period in 2015, as well as running extortion and illegal gambling operations in Richmond. Records filed by Jin and Wei in the Tax Court case say they were informed in 2018 they were no longer under investigation and would not be charged in the RCMP's 2015 E-Pirate investigation. Jin was also cleared in another major money laundering investigation . A special prosecutor appointed by Premier David Eby, when he was the attorney general, declared no charges would be laid in the case that involved millions of dollars that moved through bank accounts, including in China, and bulk cash supplied to Jin. In Qin's case, the CRA's court filing said her undeclared income of $2.33 million between 2011 to 2015 was in part from 'large sums of money' earned by Silver International. Silver International's undeclared income was put at $1.94 million. During that period, Qin had stated her total income as $25,427, less than one per cent of her alleged unreported earnings. Qin was the sole shareholder and director of Silver International, had control of its operations, including sole signing authority, and she deposited cash in 'round' numbers into her personal bank accounts, said the CRA's court filings. Qin's 'lifestyle was far beyond what she could have afforded based on her reported income,' said the CRA. The tax appeal cases had moved slowly, delayed in part by the pandemic. Some reassessments were filed by the CRA as far back as 2017, and some court actions started more than 5½ years ago. ghoekstra@
Global News
a day ago
- Global News
The CRA needs to give Canadians ‘relevant, clear' information: watchdog
The Canada Revenue Agency needs to do a better job at making sure the information it gives Canadian tax filers is 'relevant, clear, concise and easy to find,' a new watchdog report says. That comes after Canadian taxpayers filing with the agency have reported various issues over the most recent tax season, and after years of ongoing reports probing service times and ways to improve how the tax agency interacts with Canadians. The fifth and final annual report by Canada's Taxpayers' Ombudsperson François Boileau was tabled Friday in the House of Commons, and focused on the period between April 1 of last year, to March 31 of 2025. Boileau's five-year mandate is scheduled to conclude in 2025. The ombudsperson made a total of 16 recommendations over the course of the last fiscal year in two previous reports, of which the CRA has accepted 13. Story continues below advertisement 5:19 With tax deadline approaching, how to ensure you get the most from your return Of the recommendations, the ombudsperson says the CRA should 'perform a comprehensive review of its content on adding that the architecture and content it provides on the website for visitors contained 'redundant information.' Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy It also needs to provide information that is more 'relevant, clear, concise and easy to find,' the report said. Some of the most common issues reported by taxpayers as a 'trend' by the ombudsperson included the CRA's call centres. The report details how many taxpayers were unable to reach an agent at the CRA for help due to long wait times or disconnections. In cases when they could get through, some taxpayers reported being provided with information that was 'incomplete, inaccurate, or unclear.' The CRA has been cutting staff throughout the past year as it looks to lower its operating costs, with the agency adding in the most recent round of cuts that 'it is likely that some internal services will be impacted, with some services being eliminated entirely.' Story continues below advertisement Another common complaint the Ombudsperson highlighted in the report focused on how the CRA, when collecting taxes, needs to better take into account the potential 'financial hardships' that may result for Canadians with certain 'personal circumstances,' the report said. In closing his presentation in the House of Commons, Boileau said he was 'aware' of the CRA's cost-cutting measures, which involve shedding some jobs, and that the Office of the Ombudsperson would continue to monitor the situation closely.
Ottawa Citizen
a day ago
- Ottawa Citizen
G Burger says farewell to Elgin Street before moving to new location
When Nader Salib originally put pen to paper for his Elgin Street lease, he had no idea that the space would one day become home to Gitanes Burger. Article content Born out of the COVID-19 pandemic as a pop-up, sister-restaurant to Gitanes, the eatery colloquially known as G Burger became a permanent spot by 2022. Article content Article content 'I think that period of time changed a lot in people's lives, and I was just more excited about the burger concept,' Salib said. Article content Article content After 10 years spent on Elgin Street, Salib is ready to establish G Burger's new home on Wellington Street West, which he is hopeful will open by the end of August. June 20 is the eatery's final day on Elgin Street. Article content 'When we originally signed the lease, it wasn't for a burger concept,' Salib said. 'The concept came about during COVID when we started doing takeout out of Gitanes, and we didn't want to do fine dining food for takeout. We thought we'd do burgers and it really took off. Article content 'The concept doesn't warrant that big space that's there, it just doesn't help it thrive. If anything, I think it holds it back a little bit.' Article content Article content It's 'super sad' to leave, Salib says, especially for the staff who have grown familiar with the Elgin Street location. Some staff who are now approaching 30 years old have worked in the same space since they were teenagers. Article content Article content 'We built a lot of memories there,' Salib said. 'The laughs we've had together and stories we shared together.… There's just too many to count. Article content 'I think all of us are kind of sad to move on, but for me personally, I was ready for a change.' Article content The Wellington Street location that G Burger will soon inhabit once belonged to the iconic John's Diner, which closed last April. Article content It's 'very flattering' to take over such a well-known location, according to Salib, who says the move is 'surreal' despite the pressure. Article content 'It's definitely big shoes to fill,' he said. 'I think the scariest thought was, 'Are people gonna come in and expect John's from G Burger? Are they going to come in and expect us to be doing the same things?' Article content 'Can we really be ourselves and thrive in that space?' Article content Regardless, Salib says he's 'super excited' to be in the Wellington Village neighbourhood, one of Ottawa's few areas that 'G Burger can see itself in' — the Glebe and Old Ottawa South being future potential expansions.
