News Article: Eugene Melnyk lawsuits:too many to count...

[JD1]

Yes, I did and BDO is wonderful. But this relates to a business where players can earn up to 10 million a year, where coaches can make 5-6 million and GM can make up to 2 million plus.

As a result, for Eugene to declare himself as a Manager, and as a consultant. To draw yearly fees of ~ 10 million, would still be in keeping with remuneration consistent with the industry as a whole.

Eugene can easily pull 10 Million a year, and not the CRA or anyone else would touch him. And I am certain, that that is in line with other owners of other sports. And all big business. It is the means by which money moves.

If Eugene is not doing this..then he needs new advisers.

The Senators are a 135 million dollar a year business.

Eugene passing 10 million to himself on that revenue stream would not likely pass any form of reasonableness

He also uses a big 4 accounting firm and I'm thinking that as advisors they'd be clear with him that this level of transfer is not reasonable

Let's be clear here... you're speculating...what your suggesting is both common and legal...but the 10 million isn't

And if he is moving 10 million a year to an offshore corporation out of CRA's reach then he's a fool and so are his advisors

 

[The Lewler]

Honestly, if she was able to command a 130k salary, i don't think this is a case of milking them for training and flight hours. She was likely fairly experienced already at that wage. I imagine she was fully certified before acting in the capacity of the job, they just covered some pre employment training but i could certainly be wrong.

Correct.

You don’t make 130k flying private jets as a training program lol.

She probably had to certify on that specific model but was already an experienced pilot.

Commercial airline pilots take a long time to start making more than 130k. The top end can be lucrative , but the early and middle years as a pilot can be very lean.

What happens frequently is people fly Air Force until they reach their target pension, then transfer to commercial or private .

So say they leave as a Major making low 100ks a year , but they leave with 50% pension after 20 yrs.

So they take their 50k a year pension and go get paid 40-50k as a first officer with Air Canada for several years until they start climbing the ranks after certifying.

Eventually hoping to get to the point where they are making 200k+ as a captain with the airline on choice routes. Maximum win is then retiring with military pension and air canada pension , so they bring in high 100ks forever.

I think the commercial airline pilots pension has been affected like almost everyone else , but that’s why the Air Force struggles with veteran pilot retention.

 

[Sun God Nika]

i just want him to successfully get sued for more than he is worth

 

[Micklebot]

Correct.

You don’t make 130k flying private jets as a training program lol.

She probably had to certify on that specific model but was already an experienced pilot.

Commercial airline pilots take a long time to start making more than 130k. The top end can be lucrative , but the early and middle years as a pilot can be very lean.

What happens frequently is people fly Air Force until they reach their target pension, then transfer to commercial or private .

So say they leave as a Major making low 100ks a year , but they leave with 50% pension after 20 yrs.

So they take their 50k a year pension and go get paid 40-50k as a first officer with Air Canada for several years until they start climbing the ranks after certifying.

Eventually hoping to get to the point where they are making 200k+ as a captain with the airline on choice routes. Maximum win is then retiring with military pension and air canada pension , so they bring in high 100ks forever.

I think the commercial airline pilots pension has been affected like almost everyone else , but that’s why the Air Force struggles with veteran pilot retention.

Yep. CAF isn't found of investing millions into training pilots only to see the go the commercial route. Retention can be an issue for sure and the commercial route can be pretty attractive.

 

[supsens]

Correct.

You don’t make 130k flying private jets as a training program lol.

She probably had to certify on that specific model but was already an experienced pilot.

Commercial airline pilots take a long time to start making more than 130k. The top end can be lucrative , but the early and middle years as a pilot can be very lean.

What happens frequently is people fly Air Force until they reach their target pension, then transfer to commercial or private .

So say they leave as a Major making low 100ks a year , but they leave with 50% pension after 20 yrs.

So they take their 50k a year pension and go get paid 40-50k as a first officer with Air Canada for several years until they start climbing the ranks after certifying.

Eventually hoping to get to the point where they are making 200k+ as a captain with the airline on choice routes. Maximum win is then retiring with military pension and air canada pension , so they bring in high 100ks forever.

It says she worked for six months after her training. No one suggested she was payed that for training. They did say she owed them money for her training. So I’m not sure she would owe them money for showing her where the plane was parked
Google says private pilots make around 110 000 USD a year

 

[Tuna99]

Why is this illegal?

I'm not trying to be difficult. I'm curious as to why.

illegal might be the wrong choice of words - but difficult to sell people on buying tickets when the owner won’t pay the people who buy the tickets what they are due.

ford paid people a wage so they could buy his cars. Something in this particular business practice makes sense to me.

 

[supsens]

illegal might be the wrong choice of words - but difficult to sell people on buying tickets when the owner won’t pay the people who buy the tickets what they are due.

ford paid people a wage so they could buy his cars. Something in this particular business practice makes sense to me.

Ummmmm

At approximately 2 p.m., several of the leading UAW union organizers, including Walter Reuther and Richard Frankensteen, were asked by a Detroit News photographer, James R. (Scotty) Kilpatrick, to pose for a picture on the overpass, with the Ford sign in the background. While they were posing, men from Ford's Service Department, an internal security force under the direction of Harry Bennett, came from behind and began to beat them.[2][3] The number of attackers is disputed, but may have been as many as forty.[4]

Ford paid to beat people, he was a union buster

The Ford Hunger March, sometimes called the Ford Massacre, was a demonstration on March 7, 1932 in the United States by unemployed auto workers in Detroit, Michigan, which took place during the height of the Great Depression. The march started in Detroit and ended in Dearborn, Michigan, in a confrontation in which four workers were shot to death by the Dearborn Police Department and security guards employed by the Ford Motor Company. More than 60 workers were injured, many by gunshot wounds. Three months later, a fifth worker died of his injuries.

 

[JD1]

Ummmmm

At approximately 2 p.m., several of the leading UAW union organizers, including Walter Reuther and Richard Frankensteen, were asked by a Detroit News photographer, James R. (Scotty) Kilpatrick, to pose for a picture on the overpass, with the Ford sign in the background. While they were posing, men from Ford's Service Department, an internal security force under the direction of Harry Bennett, came from behind and began to beat them.[2][3] The number of attackers is disputed, but may have been as many as forty.[4]

Ford paid to beat people, he was a union buster

The Ford Hunger March, sometimes called the Ford Massacre, was a demonstration on March 7, 1932 in the United States by unemployed auto workers in Detroit, Michigan, which took place during the height of the Great Depression. The march started in Detroit and ended in Dearborn, Michigan, in a confrontation in which four workers were shot to death by the Dearborn Police Department and security guards employed by the Ford Motor Company. More than 60 workers were injured, many by gunshot wounds. Three months later, a fifth worker died of his injuries.

Hey thanks for that. That's interesting. I didn't know that

 

[AchtzehnBaby]

I’m surprised some posters still go out on a limb and go through the mental arithmetic required to defend all of these Melnyk moves. Give the spin a break, let the courts settle it and revisit when we have a ruling.

Likewise.

The FUD that people make up is crazy.

 

[Ice-Tray]

It's not. As a private owner he can move money in and out of the company at will, and can use company resources for his own use, as long as it's done in a transparent manner. (Basically it has to be done in a way that lets CRA get their cut of the benefit he get's of using the company resources).

This is completely separate from the Pilot's claim, which sounds like an employee vs independent contractor issue, which comes up regularly in business. The labour board would rule on these on a pretty regular basis. What's unusual from my experience is for the company to appeal the decision over such are relatively small amount.

Thanks for this post. Making my way through the freaking out, and the jumping to conclusions, this post is level headed, and laid out the issue nicely (there were others) without any fat added.

 

[Ice-Tray]

Correct.

You don’t make 130k flying private jets as a training program lol.

She probably had to certify on that specific model but was already an experienced pilot.

Commercial airline pilots take a long time to start making more than 130k. The top end can be lucrative , but the early and middle years as a pilot can be very lean.

What happens frequently is people fly Air Force until they reach their target pension, then transfer to commercial or private .

So say they leave as a Major making low 100ks a year , but they leave with 50% pension after 20 yrs.

So they take their 50k a year pension and go get paid 40-50k as a first officer with Air Canada for several years until they start climbing the ranks after certifying.

Eventually hoping to get to the point where they are making 200k+ as a captain with the airline on choice routes. Maximum win is then retiring with military pension and air canada pension , so they bring in high 100ks forever.

I think the commercial airline pilots pension has been affected like almost everyone else , but that’s why the Air Force struggles with veteran pilot retention.

Man, thanks for this. I could have made so many smarter decisions in my youth. This would have been a sweet path to choose, and to think I was in a situation to start down this road....

Ah well, couldn’t wish a change at this point in my life!

 

[Ice-Tray]

What is FUD?

 

[Beville]

Man, thanks for this. I could have made so many smarter decisions in my youth. This would have been a sweet path to choose, and to think I was in a situation to start down this road....

Ah well, couldn’t wish a change at this point in my life!

Just gotta think though, you’ve gotta be damn lucky to get into pilot school... and then pass years of training before you even look at going fighter/heavy/rotary.

But he is absolutely right, Air Force to Commercial is extremely common. Saying that though, if you’re a professional pilot and then join the RAF, at least, your wage is ridiculous - it’s the only way they can retain you.

 

[West Coast Eagles]

They had a 6 month min employment req because the employer was covering some training costs (my assumption is there is some specific training for the jet they leased that they covered but I'd have to check with one of the pilots i know to see if that's a reasonable assumption).

Once she hit the 6 months she was free to go and if they thought 6 months wasn't enough time to get value on the cost of training they should have made that clause have a longer period before it was covered.

I’m rusty on the regs - been 3 years since I was in aerospace and that was rotary. Nevertheless The article says she was employed as Chief Pilot and paid. Under FAA regs that means she had to have had her CPL already and without knowing Melnyks aircraft what I get from the article is it sounds like they paid for either IFR (very unlikely/almost no chance to me), multi engine rating (possible but unlikely) or type rating (most likely to me) and set the return of service obligations at 6months. Only other things I can think of would be if she was going through Certified Flying Instructor course but I’m doubtful on this

 

[BK201]

The Senators are a 135 million dollar a year business.

Eugene passing 10 million to himself on that revenue stream would not likely pass any form of reasonableness

He also uses a big 4 accounting firm and I'm thinking that as advisors they'd be clear with him that this level of transfer is not reasonable

Let's be clear here... you're speculating...what your suggesting is both common and legal...but the 10 million isn't

And if he is moving 10 million a year to an offshore corporation out of CRA's reach then he's a fool and so are his advisors

Depends on what he's doing where and his primary citizenship tbh.

If I went to Greece and traded stocks I would owe CRA capital gains tax but not Greece because greece has no capital gains tax.

But if I was a primary Greek citizen then I would only owe Canada capital gains tax when trading in Canada.

Melnyk currently lives where there is no capital gains tax.

 

[Tighthead]

Depends on what he's doing where and his primary citizenship tbh.

If I went to Greece and traded stocks I would owe CRA capital gains tax but not Greece because greece has no capital gains tax.

But if I was a primary Greek citizen then I would only owe Canada capital gains tax when trading in Canada.

Melnyk currently lives where there is no capital gains tax.

Citizenship is irrelevant. Residency is.

A capital gain is only relevant if he sells the team. Any other capital transactions would be on a personal level and not involve the team.

If he provides management or consulting services from home, I think CRA would still argue that the services are delivered here and taxable as such.

 

[BK201]

Citizenship does matter if I go to greece

Citizenship is irrelevant. Residency is.

A capital gain is only relevant if he sells the team. Any other capital transactions would be on a personal level and not involve the team.

If he provides management or consulting services from home, I think CRA would still argue that the services are delivered here and taxable as such.

Why do I feel like even if my primary residence was in greece I would still owe CRA money? Is that completely wrong?

 

[Tighthead]

Citizenship does matter if I go to greece


Why do I feel like even if my primary residence was in greece I would still owe CRA money? Is that completely wrong?

Greece is completely irrelevant to Melnyk’s situation.

Taxation in Canada, the US and most jurisdictions is based on residency. If you lived in Greece but earned money in Canada you would have Canadian taxable income. I’m not sure if there is a treaty between the two countries.

About 10 years ago the IRS started getting aggressive with Americans residing abroad but I’m not sure where that went.

 

[saskytaxi]

Melnyk is really unbelievable

 

[BK201]

Greece is completely irrelevant to Melnyk’s situation.

Taxation in Canada, the US and most jurisdictions is based on residency. If you lived in Greece but earned money in Canada you would have Canadian taxable income. I’m not sure if there is a treaty between the two countries.

About 10 years ago the IRS started getting aggressive with Americans residing abroad but I’m not sure where that went.

Ok, greece didn't matter it was more the tax implication and they are with EU.

I looked up the cra stuff and see where I got confused your right. That's interesting haha.

 

[YouGotAStuGoing]

What is FUD?

Google says Fear, Uncertainty and Doubt. Huh. Wouldn't've guessed.

 

[BatherSeason]

Just read the article. Lol. Still think it's funny that many people are quite happy with Eugene supposedly "staying out of the spotlight" so far this year. The three lawsuits kind of contradict that statement, but I guess the bar has been set pretty low.

 

[Ice-Tray]

Google says Fear, Uncertainty and Doubt. Huh. Wouldn't've guessed.

Haha yeah is suppose I could have googled it as well, I got lazy, thanks for that!

 

[supsens]

Hey thanks for that. That's interesting. I didn't know that

Ya it’s crazy the ‘ford service department’ was a group of boxers, smugglers and criminals that never worked they hung around and set people in the city straight. He also handed out an anti jewish paper at the front desks in his business. A very mean bad person

 

[JD1]

Greece is completely irrelevant to Melnyk’s situation.

Taxation in Canada, the US and most jurisdictions is based on residency. If you lived in Greece but earned money in Canada you would have Canadian taxable income. I’m not sure if there is a treaty between the two countries.

About 10 years ago the IRS started getting aggressive with Americans residing abroad but I’m not sure where that went.

In this particular discussion, we are talking about a Canadian incorporated company. If that company was pushing money to an offshore entity and the push wasn't deemed reasonable then the CRA would take issue with it.