Terry Hui’s Concord Pacific Faces $91M Tax Bill, Jeopardizing Future Projects
Vancouver-based property companies controlled by prominent developer Terry Hui are challenging a $91 million tax bill levied by the Canada Revenue Agency (CRA), arguing that payment would jeopardize future construction projects. The dispute stems from a 12-year audit examining transactions involving related corporations in Luxembourg.
The Dispute and Court Challenge
Adex Securities Ltd., One West Holdings Ltd., and an affiliated numbered B.C. Company filed an application in Federal Court earlier this month seeking to halt the minister of national revenue from issuing tax assessments dating from 2007 to 2013. The court application alleges the CRA began its audit in 2013, scrutinizing payments to Luxembourg-based corporations for potential tax avoidance and “treaty abuse.”
Focus on Luxembourg Transactions
The core of the dispute revolves around interest payments routed through companies in Luxembourg. Though, the developers maintain these transactions were not intended for tax avoidance purposes. The companies claim they will “suffer irreparable harm” if forced to pay the $91 million, plus interest, asserting they could not have anticipated such a substantial debt.
Potential Impact on Construction
According to the application, one or two construction projects could be halted if the companies lose $91 million in working capital. Justin Kutyan, a lawyer with KPMG Law in Toronto representing the developers, clarified that no projects are currently affected, but future projects are at risk. He stated that the transactions are similar to a tax structure previously upheld by the Supreme Court of Canada.
The Alta Energy Luxembourg Ruling
The developers are referencing a 2021 Supreme Court of Canada ruling in the case of Alta Energy Luxembourg. The court found in Alta’s favor, stating that Canadian tax authorities could not use anti-tax avoidance rules to alter or renegotiate existing tax treaties. The court reasoned that Canada had willingly agreed to limit its taxing rights on certain Luxembourg-based entities in exchange for investment and economic opportunities. The ruling emphasized that Canada had “effectively agreed to supply up its right to tax certain entities” to attract foreign investment.
Allegations Against the CRA
The companies also allege that the CRA acted improperly by attempting to maximize recovered funds near the end of the fiscal year, potentially influenced by federal job cut threats.
Terry Hui and Concord Pacific
Terry Hui is the CEO of Concord Pacific, a major real estate developer in British Columbia. Hui gained prominence after securing control of the Expo 86 lands in Vancouver, transforming the area into Concord Pacific Place, a large-scale residential and commercial development. Concord Pacific has been a significant force in shaping Vancouver’s urban landscape.
Next Steps
As of February 21, 2026, the federal government has not yet filed a response to the court application, and a hearing date has not been scheduled. The outcome of this case could have significant implications for future tax assessments involving international transactions and the development of construction projects in British Columbia.