December 5, 2022
Midnight Integrated Financial Inc., Tower Adventures Ltd., Booker Adventure Corp., and Comstock Adventure Corp., an Edmonton, Alberta-based group of investment companies, obtained CCAA protection on December 5. Midnight conducted its operations under the trade name "Midnight Sun Financial" and operated as a financial firm that focused on investing in private opportunities, trading in capital markets and designing unique instruments for investors in the exempt markets. Each of Tower, Booker and Comstock was engaged in the formation and sale of an inventory of foreign exchange trading partnerships which were formed and established as turnkey businesses. CRA has audited the companies' tax returns for 2016-2020 and takes the position that the companies were promoting tax shelters without registering their share offerings as a tax shelter. CRA has assessed the companies for tax shelter promoter penalties of 25% of the consideration received (a cumulative amount of over $54 million). In addition, CRA has reassessed Booker and Comstock's income for 2017, resulting in over $14 million of additional tax owing. The companies dispute the assessments. EY was appointed monitor. Counsel is DLA Piper for the monitor and Duncan Craig for the companies.
By Dina Milivojevic