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Response to Tax Dodging by Rich Will Show Trudeau’s True Colours
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…
Canada Without Poverty charity challenges Harper govt. audits at UN in Geneva
Ottawa anti-poverty charity in Geneva this week arguing before UN that political-activity audits are an abuse
The head of a small Ottawa-based charity is in Geneva this week to complain to a United Nations committee about the Canada Revenue Agency’s program of political-activity audits.
Harriett McLachlan, president of Canada Without Poverty, is pleading her case before the UN Human Rights Committee, arguing that a special audit program launched by the tax agency in 2012 violates Canada’s international commitments on human rights.
The UN Human Rights Committee will hear complaints this week from a small Ottawa charity that the Harper government is violating its rights.
McLachlan says a rule limiting to 10 per cent the resources a charity can devote to political activities effectively silences groups like hers that want to hold the Canadian government accountable.
“If we want to write a petition, or be part of some kind of gathering, a protest, there’s a fear there that we are stepping over the bounds,” she said in an interview with CBC News.
“There’s a potential of a gag being put over my mouth.”
Canada under scrutiny
Canada Without Poverty is among 60 charities being hit with political-activity investigations under a $13.4-million special program by the Canada Revenue Agency. The group has been under continuous audit for three years.
The UN Human Rights Committee each year reviews the human-rights records of a handful of the 168 countries that have signed the International Covenant on Civil and Political rights. Canada’s turn comes up this week.
A panel of 18 independent experts will listen to Canadian groups, such as Kairos and Amnesty International Canada, raising issues of human-rights abuses in Canada, including murdered and missing indigenous women, and the residential school abuse of indigenous children.
…click on the above link to read the rest of the article…
A frank discussion of Canada, the environment and Sierra Club Canada Foundation | Sierra Club Canada
A frank discussion of Canada, the environment and Sierra Club Canada Foundation | Sierra Club Canada.
Reflecting is a good thing this time of year. First, I want to thank you for your support and apologize for being so annoying with my constant demands.
Then, give a big sigh of relief…we got through yet another year without being silenced. It is a real concern – many organizations have audits hanging over their heads and others fear they will be next. It can have a chilling effect, and we have felt the chill, examined our operations and made numerous administrative changes…but we will not be silenced. We will continue to speak out–that is our role.
We were targeted by (un)EthicalOil.org in 2012 and 2013–they wanted the Canadian Revenue Agency (CRA) to shut us down–but not this year. Perhaps it’s because bullies generally fade away when you stand up to them.
The CRA chill has caused many foundations to turn away from advocacy and invest in other kinds of environmental work. They may fear the government or just believe the chances of stimulating change in today’s Canada are limited. We used to rely on individuals to support our capacity to approach large foundations, and foundations to cover the costs of programs. In today’s world, we must rely on your support and generosity more than ever before. It’s not cliché—it’s the new normal, unfortunately.
