Henning brothers appeal tax ruling
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The tax battle between the former owners of Douglas Creek Estates and the Canada Revenue Agency continued in a Toronto courtroom Wednesday. Don and John Henning are fighting a reassessment on the 15.8 million dollars the province paid them in 2006 — for land occupied by native protesters in Caledonia.
Don Henning testified today. He owns the land with his brother Don under a company called Henco Industries when the land was taken over by native occupiers in 2006. Today he testified that, during those protests, the media would show burning tires and people fighting on his property in news reports almost everyday — something he said ruined Caledonia’s brand and devastated Caledonia’s property value. Now, Hennings testimony went through a series of email exchanges and documents related to and leading up to the sale of Douglas Creek Estates to the province after those protests began.
The government purchased the land from Henco for 15.8 million dollars. At that point, Henning said they’d had enough.
During cross-examination Henning was asked about two other properties that Henco owned at the same time — they were transferred to another company to protect their assets during the lawsuit. When asked, Henning said Henco only exists today to deal with this dispute with the Canada Revenue Agency. The CRA assessed Hennings at the highest tax rate. They’re trying to reduce that tax rate arguing that this was not just another routine real estate transaction.
Court will resume tomorrow and the proceedings are expected to last up to three weeks.
