CRA vows action on Canadian tax evaders exposed in Paradise Papers

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

CRA vows action on Canadian tax evaders exposed in Paradise Papers

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

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

RCMP thanked the public for assistance in finding Benjamin Archie, last seen in Princeton. (RCMP)
Missing Chilliwack man found safe and sound

The 80-year-old had walked away from his home in Chilliwack

.
Princeton’s Spotlight wins two provincial awards for excellence

Publisher takes first place for investigative reporting

Princeton GSAR responds 24 hours a day, 365 days a year. In 2020 the crew was called out 34 times, and members spent 721 hours on calls, and 683 hours training. Photo Princeton GSAR Facebook
Teen missing in Manning Park found after 24 hours

Young man spends night on mountain and survives with just a few scrapes

The COVID-19 cases reported over the week of May 30 to June 5. (BC CDC)
South Okanagan sees second straight week of 17 new COVID-19 cases

Summerland, Keremeos and Princeton all recorded no new cases

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

(Heather Lueck image)
Crash north of Enderby knocks out power, slows Highway 97A traffic

A witness captured footage of a medical helicopter landing at the scene

Most Read