Latest news with #Deluce
Vancouver Sun
3 days ago
- Business
- Vancouver Sun
Porter CEO battling CRA over tax bill from 'significant losses' from 'high-risk' pandemic trading
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 . According to a document filed to the Tax Court of Canada, Deluce noticed market volatility and decided to liquidate an investment portfolio containing low-risk investments that would generate capital, but only in the long-term. 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. Instead, Deluce put the funds into a self-managed investing account and swung for the stars. According to an appeal he filed in court, the airline executive thought he could make significant amounts of money by investing in high-risk exchange-traded funds (ETF). He tried to short the S&P 500 index because he had a 'very pessimistic view' of the market's reaction to the pandemic and thought he could 'profit off a potential fall of the stock market'. On March 20 — the same day Porter suspended all flights for what would become 18 months — Deluce invested in an ETF focused on the price of futures contracts on crude oil, the document shows. His bet was that oil prices would rise within days after plummeting in early March amid a sharp dip in demand in the U.S. (they did not). '(Deluce) traded high-risk investment products with the intention of capitalizing on the volatility of the market caused by the Covid-19 pandemic, and to realize significant short-term profits,' reads his appeal. But Deluce's gamble did not pay off. His appeal states that he incurred 'significant losses' in his attempt to bet against the S&P 500, and losses in the four days he bet on oil prices rising starting March 20, 2020, but some gains from purchasing and selling units of a third ETF on March 26, 2020. After eight months of trading, he had accrued nearly $5.8 million in investment losses as well as interest fees on the loans he took out to fund his trades, according to his filing. Deluce is the son of Robert Deluce, who founded Porter Airlines in 2006 after a lengthy battle with the City of Toronto about development at Billy Bishop Toronto City Airport where the airline is headquartered. Michael Deluce was named CEO of Porter Airlines in 2019 and Robert Deluce assumed the role of executive chairman. Because he believed he was acting as a trader, Deluce claimed the amount as a business loss on his 2020 income tax filing as well as some retroactive amounts going back to 2017, reads his appeal. The losses generated over $800,000 in retroactive refunds for 2017 to 2019 and contributed towards generating a $13,000 refund for the 2020 tax year. But years later, CRA reviewed his claim and decided that Deluce was not acting as a trader, so his losses didn't qualify as business losses but instead as capital losses. 'We are of the view that you did not behave in a commercial manner of conducting a business, like a day trader would do. (limited number of transactions, long period of ownership, etc.),' reads an excerpt of the government's reassessment notice quoted in Deluce's appeal. 'If your intention was to earn business income, you should seek daily goals and should have not be expected to track the underlying index over periods longer than one day… Therefore, the loss was capital in nature and not on account of business.' The different is financially significant. If the losses are considered to be from a business, Deluce could claim them against any revenue he made. But if they are capital losses as CRA says, he could only claim 50 per cent of them and only apply them against income from capital gains. As part of its reassessment, CRA claimed over $900,000 in additional income tax, arrears interest and refund interest from Deluce. In his appeal of that decision, Deluce argued that the losses were incurred in the course of an adventure in the nature of trade and that he 'acted in the same way as a trader would.' 'The operating motivation of (Deluce) was not to pursue long-term capital appreciation,' reads he document. 'Deluce completed a significant number of transactions within a short period of time. He made trading decisions based on research, market trends and his own knowledge and professional experience.' In a statement, Porter Airlines spokesperson Brad Cicero said the issue was a personal matter for Mr. Deluce and 'unrelated to Porter and its business activities.' In a separate statement, Deluce's counsel Ed Kroft said the same: 'this tax matter is strictly a personal matter and has no relationship to any Porter activities.' In an interview, veteran tax lawyer David Rotfleisch said Deluce's battle with CRA is one of the most common types of appeal to be litigated in the tax court. 'The case will come down to, does he have the ability and the fact that will persuade a judge that, yeah, this guy did this as a trading transaction, not with an intention to buy an asset, sit on it and sell it down the road,' Rotfleisch said, noting that courts look at intention, expertise and sources of financing in these cases. 'The guy has got a background in business. He worked for Scotia capital. He was a trader. These were short transactions. He borrowed money, he bought on margins. These are all (indications) of an adventure in the nature of trade ,' he added. The CRA declined to comment while the case is in front of the court. The agency has not filed a response to Deluce's appeal. cnardi@ National Post Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what's really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here . Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our politics newsletter, First Reading, here .
Calgary Herald
3 days ago
- Business
- Calgary Herald
Porter CEO battling CRA over tax bill from 'significant losses' from 'high-risk' pandemic trading
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. Article content Article content 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. Article content Article content According to a document filed to the Tax Court of Canada, Deluce noticed market volatility and decided to liquidate an investment portfolio containing low-risk investments that would generate capital, but only in the long-term. Article content Article content Instead, Deluce put the funds into a self-managed investing account and swung for the stars. Article content According to an appeal he filed in court, the airline executive thought he could make significant amounts of money by investing in high-risk exchange-traded funds (ETF). Article content He tried to short the S&P 500 index because he had a 'very pessimistic view' of the market's reaction to the pandemic and thought he could 'profit off a potential fall of the stock market'. Article content On March 20 — the same day Porter suspended all flights for what would become 18 months — Deluce invested in an ETF focused on the price of futures contracts on crude oil, the document shows. His bet was that oil prices would rise within days after plummeting in early March amid a sharp dip in demand in the U.S. (they did not). Article content Article content '(Deluce) traded high-risk investment products with the intention of capitalizing on the volatility of the market caused by the Covid-19 pandemic, and to realize significant short-term profits,' reads his appeal. Article content Article content But Deluce's gamble did not pay off. His appeal states that he incurred 'significant losses' in his attempt to bet against the S&P 500, and losses in the four days he bet on oil prices rising starting March 20, 2020, but some gains from purchasing and selling units of a third ETF on March 26, 2020. Article content After eight months of trading, he had accrued nearly $5.8 million in investment losses as well as interest fees on the loans he took out to fund his trades, according to his filing. Article content Deluce is the son of Robert Deluce, who founded Porter Airlines in 2006 after a lengthy battle with the City of Toronto about development at Billy Bishop Toronto City Airport where the airline is headquartered. Michael Deluce was named CEO of Porter Airlines in 2019 and Robert Deluce assumed the role of executive chairman.
Cision Canada
29-04-2025
- Business
- Cision Canada
Melkior Drills 77.4 g/t Au over 6.9m in New High-Grade Gold Discovery at Carscallen, Including Project's Highest Grade Gold Interval of 445 g/t Au over 1.2m
TIMMINS, ON, April 29, 2025 /CNW/ -- Melkior Resources Inc. ("Melkior" or the "Company") (TSXV: MKR) (OTC: MKRIF) is pleased to announce it has discovered a new high-grade zone as the result of its 1,200 meter (5-hole) winter drill program at its 100% owned Carscallen Gold Property located about 25 kilometers west of the City of Timmins, Ontario. The drilling was focused on expanding the strike and down plunge of the N-S trend, 1010 gold-mineralized structural zone, and is located approximately 1 km southwest of the Shenkman Zone, where the Company previously identified 51.9 grams per ton (g/t) gold over 3.7 metres and 23.5 g/t gold over 8 metres. Highlights : - DH MKR-24-002 intersected 77.4 g/t gold over 6.9 meters including 445 g/t gold over 1.2 meters at the 1010 South Zone (Table 1, Figures 2-5). This represents a new high-grade gold discovery at depth of the 1010 South Zone This is the highest metal factor (534 g/t) intercept in the Project's history. The Company is in the process of planning follow-up holes to test the potential extensions of this high-grade intercept. - DH MKR-24-001 intersected 2.58 g/t gold over 0.50 meters. - DH MKR-24-003 intersected two zones 2.70 g/t gold over 0.80 meters and 1.26 g/t gold over 1.30 meters. Jim Deluce, Company Director, commented: "I am thrilled by this discovery and the work completed this past winter at Carscallen Property. These results, the highest ever at the property, not only demonstrate the continuity of the high-grade vein system along strike and down-dip with the best drill intersections attained to date, but also the potential that Carscallen holds when drilling new zones." Mr. Deluce continued: "The newly discovered bonanza grade mineralization at the 1010 Gold Zone, together with our high-grade gold prospects at Zamzam, Jowsey and Shenkman gold showings, truly attest to the upside potential of the area for significant mineral discoveries. Our next step is to review the intercept in more detail to determine follow-up holes to expand on this high-grade intercept. We look forward to our next drill campaign as we continue to develop Carscallen." 1010 Gold Zone The 1010 gold showings are characterized by multiple, anastomosing, shear-hosted, quartz-sulphide veins which are locally enveloped by silica-albite-sericite altered stockwork breccia mineralization in the surface. The gold zones are often steep dipping (> 75 degrees) and often exhibits pinch and swell attitude, reaching to over 500m strike length in a north trend direction. The high-grade gold mineralization is coincident strongly altered, structurally controlled magnetics zones which are overlapping with mod-high IP chargeability (conductors), and moderate resistivity. These classical geophysical signatures are typical in almost all of the gold showings at the Carscallen Property. In a north-south longitudinal section, the mineralization at 1010 Gold Zone appears to be controlled by fold hinge structure where the 1010N is plunging to the north while the 1010S has a low southerly plunge. Current exploration is focused on testing new gold opportunities and expanding the well- developed gold-bearing mineralization outside the main Zamzam-Jowsey-Shenkman Zones, with additional high-grade ore shoots along series of repeating gold mineralized shears like the 1010 Zone. Figure 1: Overview of the Carscallen Gold Property near Timmins-Ontario. Figure 2: Carscallen Drill Hole Map overlaid on geological data, highlighting known mineralized zones and gold assay results from past drilling. Figure 3: Core sample photo from Hole MKR-24-002 (Boxes 46 & 47), displaying high-grade gold intercepts over 6.9 meters (208.5–215.4 m) at 77.40 g/t, including 1.2 meters at 445 g/t. Inset A shows deformed smoky quartz-sulphide veins with visible gold veinlets in highly altered granodiorite/tonalite intrusive rock. Figure 4: Long section highlighting the recent drilling intercepts from holes MKR-24-001, MKR-24-002, and MKR-24-003 relative to historical drilling at the 1010 Gold Zone. Figure 5: Carscallen Drill Hole on IP Chargeability (Conductor) Map which highlights known mineralized zones and gold assay distribution from historic drillholes. Table 1: Selected drill hole assay intercepts (uncut) from 1010 Gold Zone. The True Width of the intervals has not yet been established by drilling. Qualified Person All technical information in this press release has been reviewed and approved by Martin Ethier, Mr. Ethier is a consultant for Melkior and a Qualified Person for the purposes of National Instrument 43-101. About Melkior Resources Melkior Resources Inc. is an exploration-stage resource company operating in world-class mining jurisdictions across Quebec and Ontario. The company is dedicated to advancing a portfolio of high-potential mineral properties with a primary focus on gold exploration. Melkior's flagship projects include the Carscallen Project, the Beschefer East Project, the Genex Project and the Val-d'Or Project. These projects are strategically located in the Abitibi Greenstone Belt, known for hosting significant gold and base metal deposits. ON BEHALF OF THE BOARD Keith James Deluce, Director The reader is invited to visit Melkior's web site Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
CBC
04-02-2025
- Business
- CBC
Porter Airlines will fly from Hamilton to Calgary, Edmonton, Halifax and Vancouver starting in June
Social Sharing Porter Airlines will launch service at Hamilton International beginning in early June 2025, with daily flights from to Calgary, Edmonton, Halifax and Vancouver, airline and airport executives announced Tuesday. Porter Airlines CEO Michael Deluce made the announcement at a news conference at the John C. Munro Hamilton International Airport. "Hamiltonians and their neighbours have long deserved a commitment such as what Porter is making, with four routes connecting them across the country," Deluce said in a news release. "We see significant opportunity in this market to expand our network across North America and believe that the community can support these initial flights — which will position us to consider offering additional service from Hamilton." The announcement comes weeks after Play Airlines announced it was pulling out of Canada — less than two years after entering the market. The discount carrier's schedule shows that starting in late April it will stop its four flights per week from Hamilton to its home base in Reykjavik, Iceland, which it uses as a stopover for trips to Europe. Cole Horncastle, executive managing director of Hamilton International, said Porter's service is "a perfect fit" for Hamilton. "We are delighted to welcome Porter Airlines to Hamilton International as a strategic airline partner," Horncastle said. 'A major win for the City of Hamilton,' mayor says Mayor Andrea Horwath said she's thrilled to welcome Porter Airlines to Hamilton. "This is a major win for the City of Hamilton and will significantly transform our airport's passenger service offerings," she said. "For years, the John C. Munro Hamilton International Airport has been home to Canada's largest domestic overnight express cargo service, fueling our community's economic growth and creating jobs. "But Hamiltonians have also longed for more robust passenger options to serve travellers from our city and surrounding communities," the mayor added. Horwath said the strategic partnership between Porter Airlines and Vantage Group/TradePort, with whom the city recently completed a new long-term lease, is "a significant investment that will rejuvenate and boost passenger services and will benefit residents, businesses, and the broader region for decades to come." Last fall, TradePort International Corporation — the company that runs Hamilton International — announced it would spend $400 million in upgrades for passenger and cargo transportation over the next 49 years.
