CRA vows action on Canadian tax evaders exposed in Paradise Papers

Names exposed include Brian Mulroney, Paul Martin and Jean Chretien and the Queen

The Canada Revenue Agency says it won’t hesitate to investigate new evidence of offshore tax evasion in the wake of a second massive leak of tax haven financial records.

The leak of some 13.4 million records, dubbed the Paradise Papers, lifts another veil on the often murky ways in which the wealthy — including more than 3,000 Canadian individuals and entities — stash their money in offshore accounts to avoid paying taxes.

Among the names that pop up in the records with some connection to offshore accounts are former Canadian prime ministers Brian Mulroney, Paul Martin and Jean Chretien, the Queen, U.S. commerce secretary Wilbur Ross, and the past and current chief fundraisers for the federal Liberal party.

Neither the CRA nor any court has determined the Canadians did anything wrong.

Offshore accounts are used by wealthy individuals and corporations around the world as a perfectly legal way to reduce their tax burden, although the anonymity provided to account holders has also led to associations with tax evasion, money laundering and organized crime.

The Paradise Papers were obtained by German newspaper Suddeutsche Zeitung and the International Consortium of Investigative Journalists, including CBC/Radio Canada and the Toronto Star which published details on Sunday.

The media outlets did not disclose how they acquired the documents, which consist primarily of client records of offshore law firm Appleby, as well as some records from offshore corporate services firms Estera and Asiaciti Trust.

In an apparent attempt to pre-empt the news reports, the CRA issued a statement last Friday, detailing the agency’s efforts to crack down on tax evasion and tax avoidance, which intensified following the first huge leak of tax-haven records, known as the Panama Papers, in April 2016.

The agency said it’s invested $1 billion to tackle the problem and currently has more than 990 audits and more than 42 criminal investigations underway related to offshore tax havens.

As a result of audits over the last two years, the CRA said it identified some $25 billion in unpaid taxes, interest and penalties. And last year, it levied more than $44 million in penalties on tax advisers who facilitated non-compliance with Canadian tax laws.

The agency said it’s also working closely with 36 other countries in the Joint International Taskforce on Shared Intelligence and Collaboration on more effective ways to detect and deal with tax evasion and avoidance.

Evidently anticipating Sunday’s release of the Paradise Papers, the CRA promised to do more should new details of questionable practices emerge.

“In the event that further details come to light, CRA will not hesitate to investigate and take further action as warranted,” the agency said.

“The government of Canada will continue to work with the provinces and territories, as well as other tax administrations and all other partners, to ensure a tax system that works for Canadians. In addition, the CRA will continue to build on its capacity to detect and crack down on tax cheats and ensure that those who choose to break the law face the consequences and are held accountable for their actions.”

A spokesman for National Revenue Minister Diane Lebouthillier, said on Sunday that ”the CRA is reviewing links to Canadian entities and will take appropriate action in regards to the Paradise Papers.”

Tax avoidance measures involving offshore trusts are legal, provided that the trust is genuinely managed offshore and that Canadian taxes are paid on any Canadian contributions.

According to the Toronto Star and CBC/Radio Canada, the records suggest that Stephen Bronfman and his family’s Montreal-based investment company, Claridge Inc., were linked to an offshore trust in the Cayman Islands that may have used questionable means to avoid paying millions in taxes.

Bronfman is a close friend of Prime Minister Justin Trudeau, who tapped him in 2013 to fill the role of revenue chair — effectively, the chief fundraiser — for the federal Liberal party.

The offshore trust also involved former chief Liberal fundraiser and senator Leo Kolber and his son, Jonathan Kolber.

William Brock, a lawyer for Bronfman and Jonathan Kolber, denied any impropriety, telling the CBC that his clients “have always acted properly and ethically, including fully complying with all applicable laws.” Any suggestion of ”false documentation, fraud, ‘disguised’ conduct, tax evasion or similar conduct is false,” Brock added.

The Prime Minister’s Office referred questions about Bronfman to the Liberal party.

Party spokesman Braeden Caley said Bronfman’s role is strictly a volunteer position devoted to fundraising, “not policy decisions.” The revenue chair is a “non-voting position” on the party’s national board, Caley added.

The Canadian Press

Just Posted

Sentencing postponed in Castor triple homicide

Jason Klaus and Josh Frank will appear in court again Feb. 14th

Country Gardens owner Carmen Sim invited to international horticultural show

Located between Ponoka and Bashaw, the greenhouse owner is taking in a lifetime trip

Maskwacis RCMP lay charges from home invasion

Four charged in alleged invasion using knives and gun on Samson Cree Nation - three injured

UPDATE: Highway 2 lanes were closed due to milk truck fire near Millet

A southbound truck hauling milk and cartons collided with a bridge

Bashaw council concerned with early regional water hook up

Regional water commission wants town brought onto system by end of January

UPDATE/WATCH: Jason Klaus and Josh Frank guilty in triple murder

Crown argues for 75 years to life in prison, sentencing on Jan. 22nd

Babcock, Goyette and Smyth honoured at Order of Hockey in Canada

Mike Babcock, from Saskatoon, guided the Detroit Red Wings to a Stanley Cup in 2008

Bell Canada alerts customers who may be affected by latest data breach

Federal Office of the Privacy Commissioner said it had been notified

Man faces 48 charges in string of random Toronto shootings

The string of unprovoked shootings began Jan.9, say police

‘Shape of Water’ producer, Christopher Plummer among Canadian Oscar nominees

Guillermo del Toro film about merman romance earns 13 nominations

Canada, TPP agrees to revised deal without the United States

Canada and the remaining members of the Trans-Pacific Partnership have agreed to a revised trade agreement

Tsunami warnings 101: Canada

Here are some things to know about tsunami alerts in Canada and how they work

Rogers Media cuts ties with Vice Canada

Rogers Media and Vice Canada are ending their three-year-old partnership, pulling Viceland TV channel off the air

Back to work: U.S. government shutdown ends after Democrats relent

Short-term spending measure means both sides could see another shutdown stalemate in three weeks

Most Read