adplus-dvertising
Connect with us

Business

After losing more than $2M in a Ponzi scheme, this man is fighting the CRA to redo his taxes – CBC.ca

Published

 on


For the last year-and-a-half, 70-year-old Bill Janman has studied Canadian tax laws in all their complexity, as he battles the federal government to recoup tax money after losing millions in a Ponzi scheme.

The latest chapter in his fight came Monday, when he presented 700 pages of documents about his case and took the witness stand in Calgary at the Tax Court of Canada.

Janman and his wife lost more than $2 million after investing in Base Finance. They along with hundreds of others collectively lost about $137 million.

300x250x1

Arnold Breitkreutz, his company, Base Finance, and office manager Susan Elizabeth Way were fined and sanctioned in 2019 by the Alberta Securities Commission, which described the case as “among the worst frauds perpetrated in Alberta.” The commission also described Breitkreutz and Way as carrying out “a fraud by deceiving investors and operating a Ponzi scheme.”

Both were arrested by RCMP and face charges of fraud over $5,000 and theft over $5,000 for allegedly using the funds raised to pay off other investors. Their trial is scheduled for next year.

Janman and his wife were never able to recover any of their money and have since tried to amend their tax returns from 2006 to 2011 and 2014 because they included fraudulent T5s from Base Finance. A T5 slip reports the various types of investment income.

Instead of showing an investment return from those years, the T5s should show a loss as a result of the fraud.

Janman knows the millions invested in the scheme are gone, but he wants the Canada Revenue Agency to acknowledge victims of fraud and allow them to make changes to past tax returns.

CRA says couple ‘out of time’

However, the CRA argues that the couple is too late — that the deadlines have passed for the couple to file their notice of objection or apply for an extension of time to do so. The last deadline was in the spring of 2017.

“They are each out of time for all of the tax years,” said Adam Pasichnyk, the federal government lawyer who was representing the CRA, during the hearing. 

Going back and amending those tax returns would result in a collective refund of about $200,000, according to Janman. He said the CRA did offer a partial settlement of about half that amount, but he rejected it because Janman said he has done nothing wrong and is entitled to his full refund.

In court, Janman repeated his argument that there was no reason for him or his wife to file an objection with the CRA because it was only in 2018 that authorities began releasing their findings into Base Finance.

WATCH | Bill Janman says most fraud victims give up on their fight with the CRA, but he won’t:

Janman knows the money he and his wife invested in a Ponzi scheme is gone, but he wants the Canada Revenue Agency to acknowledge victims of fraud and allow them to make changes to past tax returns. 2:16

“We are not fortune tellers nor do we have a crystal ball or any ability to see the future. If we had, we would have known that Base was a Ponzi scheme in 2005, not invested any additional money and not be here today,” he said.

“We could not have filed objections in any of the years because we simply did not know that Base was a Ponzi scheme.”

Janman represents an informal group of about 300 other victims who lost money in the fraud case, most of which are seniors. 

“There are people like us that quit. I just got angry and decided I would see this through,” said Janman, who represented himself and his wife during the hearing because he said they don’t have the money for a lawyer.

“Our case here today is an insignificant amount to Canada Revenue Agency. To us, it’s a big deal.”

The Alberta Securities Commission says Arnold Breitkreutz and Susan Elizabeth Way told investors their money would be secured by mortgages on properties in the province, but instead their invested funds were spent or loaned to others. (David Horemans/CBC)

Justice Kathleen Lyons will make a ruling next week on some aspects of the case. Another hearing will be scheduled in the future.

Investors in Base Finance thought their money was secured by mortgages on real estate in Alberta. Instead, it was loaned to a man to buy oil and gas assets in the U.S. or used to buy properties for personal use, according to authorities.

Some investors were paid so-called interest payments in order to maintain the facade of a legitimate investment operation, but the payouts actually came from newer investors’ money.

Base Finance has gone into receivership and the process is still ongoing.

Let’s block ads! (Why?)

728x90x4

Source link

Business

Calgary breaks all-time record in housing starts but increasing demand keeps inventory low – CBC.ca

Published

 on


Soaring housing demands in Calgary led to an all-time record for new residential builds last year, but inventory levels of completed and unsold units remained low due to demand outpacing supply.

According to the latest report from Canada Mortgage and Housing Corporation (CMHC), total housing starts increased by 13 per cent in Calgary, reaching a total of 19,579 units with growth across all dwelling types in the city.

That compares to a decline of 0.5 per cent overall for housing starts in the six major Canadian cities surveyed by CMHC.

300x250x1

Calgary also had the highest housing starts by population.

“Part of the reason why we think that might have happened is that developers are responding to low vacancies in the rental market,” said Adebola Omosola, a housing economics specialist with CMHC.

“The population of Calgary is still growing, a record number of people moved here last year, and we still expect that to remain at least in the short term.”

Earlier this year, the Calgary Real Estate Board also predicted that demand, especially for rental apartments, wouldn’t let up any time soon. 

Industry can cope with demand, expert says

According to numbers from the report, average construction times were higher in 2023 for all dwelling types except for apartments.

The agency’s report suggests the increase in the number of under-construction residential projects might mean builders are operating at or near full capacity.

However, there’s optimism the construction industry can match the increasing need.

Brian Hahn, CEO of BILD Calgary Region, said despite concerns around about construction costs, project timelines and labour shortages, the industry has kept up with the demand for new builds.

Demand is expected to remain robust, but the construction industry can keep up, according to BILD Calgary region CEO Brian Hahn.
Demand is expected to remain robust, but the construction industry can keep up, according to BILD Calgary Region chief executive officer Brian Hahn. (Shaun Best/Reuters)

“I’ve heard that kind of conversation at the end of 2022 and I heard it in 2023,” Hahn said.

“Yet here we are early in 2024, and January and February were record numbers again.”

Hahn added he believes the current pace of construction will continue for at least the next six months and that the industry is looking at initiatives to attract more people to the trades.

Increase in row house and apartment construction

Construction growth was largely driven by new apartment projects, making up almost half of the housing starts in Calgary in 2023.

The federal housing agency says 9,034 apartment units were started that year, an increase of 17 per cent from the previous year. Of those, about 54 per cent were purpose-built rentals.

Apartments made up around two-thirds of all units under construction, CMHC said, with the total number of units under construction reaching 23,473.

Growth, however, was seen across all dwelling types. Row homes increased by 34 per cent from the previous year while groundbreaking on single-detached homes grew by two per cent.

“Notwithstanding challenges, our members and the industry counterparts that support them managed to produce a record amount of starts and completions,” Hahn said.

“I have little doubt that the industry will do their very best to keep pace at those levels.”

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Ottawa real estate: House starts down, apartments up in 2023 – CTV News Ottawa

Published

 on


Rental housing dominated construction in Ottawa last year, according to a new report from the Canada Mortgage and Housing Corporation (CMHC).

Residential construction declined significantly in 2023, with housing starts dropping to 9,245 units, a 19.5 per cent decline from the record high observed in 2022. But while single-detached and row housing starts fell compared to 2022, new construction for rental units and condominiums rose.

“There’s been a shift toward rental construction over the past two years. Rental housing starts made up nearly one third of total starts in 2023, close to double the average of the previous five years,” the report stated.

300x250x1

Apartment starts reached their highest level since the 1970s.

“The trend toward rental and condominium apartment construction follows increased demand in these market segments due to population growth, households looking for affordable options, and some seniors downsizing to smaller units,” the CMHC said.

Demand from international migration and students, the high cost of home ownership, and people moving to Ottawa from other parts of Ontario were the main drivers for rental housing starts in 2023. The CMHC says rental and condominium apartment starts made up 63 per cent of total starts in 2023, compared to the average of 37 per cent for the period 2018-2022.

There was a modest increase in rental housing starts in 2023 over the record-high seen the year prior and a jump in new condominiums. The report shows 5,846 new apartments were built in Ottawa last year, up 2.1 per cent compared to 2022.

Housing starts in Ottawa by year. (CMHC)

Big demand for condos

The CMHC said condo starts reached a new high in 2023, increasing 3 per cent from 2022 numbers.

“As of the end of 2023, there were only 13 completed and unsold condominium units, highlighting continued demand for new units,” the CMHC said.

Condominum starts increased in areas such as Chinatown, Hintonburg, Vanier and Alta Vista, as well as some suburban areas like Kanata, Stittsville, and western Orléans. Condo apartment construction declined in denser parts of the city like downtown, Lowertown and Centretown, the report says.

Taller buildings are also becoming more common, as the cranes dotting the skyline can attest. The CMHC notes that buildings with more than 20 storeys accounted for nearly 10 per cent of apartment structure starts in 2022 and 2023, compared to an average of 2 per cent over the 2017-2021 period. The number of units per building also rose 7 per cent compared to 2022.

Apartment building heights in Ottawa by year. (CMHC)

Single-detached home construction down significantly

The number of new single-detached homes built in Ottawa last year was the lowest level seen in the city since the mid 1990s, CMHC said.

“The Ottawa area experienced a slowdown in residential construction in 2023, driven by a significant decline in single-detached and row housing starts,” the CMHC said.

Single-detached housing starts were down 45 per cent compared to 2022. Row house starts dropped by 38 per cent compared to 2022, marking a third year of declines in a row.

“Demand for single-detached and row houses also declined in 2023. Higher mortgage rates and home prices have led to a shift in demand toward more affordable rental and condominium units,” the report said.

There were 1,535 single-detached housing starts in Ottawa last year, 208 new semi-detached homes and 1,678 new row houses.

The majority of single-detached and row housing starts were built in suburban communities such as Barrhaven, Stittsville, Kanata, Orléans and rural parts of the city.

“Increased construction costs resulting from higher financing rates and inflation that occurred in 2022 and 2023 contributed to the decline in construction in the region,” the CMHC said. 

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Business

Trump’s media company ticker leads to fleeting windfall for some investors

Published

 on

Open this photo in gallery:

A man looks at a screen that displays trading information about shares of Truth Social and Trump Media & Technology Group, outside the Nasdaq Market site in New York City, U.S., March 26.Brendan McDermid/Reuters

Possible confusion over the new stock symbol for former President Donald Trump’s Truth Social (DJT-Q) saw some investor brokerage balances briefly jump by hundreds of thousands of dollars on Tuesday, the first day Trump’s “DJT” ticker traded.

Several people complained on social media about briefly seeing the value of their DJT stock holdings on Charles Schwab platforms inflated to figures more in line with what they would be worth if the shares traded at the level of the Dow Jones Transportation Average.

Some users said they faced a similar issue in pre-market hours on Morgan Stanley’s E*Trade trading platform.

Shares of Trump Media & Technology Group opened Tuesday at $70.90, while the Dow Jones Transportation Average started the session at 15,937.73 points.

300x250x1

For one trader, the Schwab brokerage balance jumped by more than $1 million due to the error, according to a screen grab shared on social media platform X. Reuters was unable to contact the trader or independently verify the brokerage balance.

“It sure was nice seeing millions in the account, even if it wasn’t real,” another person, going by the username @DanielBenjamin8, who faced the issue in his E*Trade account, posted on X.

Two X users and one on Reddit surmised that the inflated balances were due to the ticker symbol for the company being nearly identical to the index.

A spokeswoman for Charles Schwab said that certain users on some of Schwab’s trading platforms saw their brokerage balances briefly inflated due to a technical issue.

The issue has been resolved and investors are able to trade equities and options on Schwab platforms, she said. Schwab declined to describe the exact cause of the issue.

E*Trade did not immediately respond to a request for comment outside of regular business hours.

Trump Media & Technology Group and S&P Dow Jones Indices, which maintains the Dow Jones Transportation Average Index, did not immediately comment on the issue.

While social media users said the issue appeared to have been resolved, many rued not being able to cash out their supposed gains from the error.

“I better go tell my boss that I’m actually not retiring,” the trader whose account balance had briefly jump by more than $1 million, wrote on X.

Trump Media & Technology Group shares surged more than 36% on Tuesday in their debut on the Nasdaq that comes more than two years since its merger with a blank-check firm was announced.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending