Response to Tax Dodging by Rich Will Show Trudeau’s True Colours
CRA ties to industry, special deals demand Liberal action.
Cartoon by Greg Perry.
We will not be distracted forever by your explanation of quantum computers and yoga poses. Or even by the admittedly impressive list of low-hanging fruit (most recently, the return of the long-form census) you have picked thanks to Stephen Harper.
It’s a comforting distraction to think that we might actually have a government that isn’t totally in the thrall of Bay Street billionaires and transnational corporations. But everything we know about your party suggests that nothing fundamental has changed. The litmus test will be how you deal with KPMG over an outrageous tax-avoidance scheme, and with the giant firm’s apologists in the Canada Revenue Agency.
By now most people are familiar with the KPMG tax “sham”uncovered by CBC News. The scheme involved at least 26 wealthy clients (minimum contribution, $5 million) for whom KPMG set up shell companies in the Isle of Man, one of many tax havens for the rich and large corporations.
The Canada Revenue Agency initially said the scheme was “grossly negligent” and “intended to deceive.”
Secretive ‘amnesty’ deals
But 15 of the 26 participants would end up getting special treatment. Some of the first ones caught were assessed huge penalties, but later KPMG clients were offered a secret deal. The “amnesty” agreement granted rich KPMG clients immunity from civil and criminal prosecution and freedom from any penalties, fines or interest as long as they paid the taxes they had dodged. Secrecy was written into the agreement: “The taxpayer agrees to ensure the confidentiality of the offer and will not inform any person of the conditions of the offer…”
Dennis Howlett of Canadians for Tax Fairness [disclosure: I am on the board] said KPMG should be charged with facilitating tax evasion. Other tax experts said a criminal investigation is warranted.
…click on the above link to read the rest of the article…
